Thinking about upgrading to a heat pump? Even though the big federal tax credit has gone away, there are still ways for Orange County homeowners to offset the cost through state and utility programs. Here’s an honest, up-to-date look at what’s available in 2026 — and, just as important, what’s no longer available.
Important update: the federal tax credit has ended
For years, the federal Section 25C “Energy Efficient Home Improvement Credit” offered up to $2,000 back on a qualifying heat pump. That credit expired on December 31, 2025 and is no longer available for new installations. If your system was installed on or before that date, you may still be able to claim it on your 2025 tax return — check with your tax professional — but for any new project in 2026, plan without it.
What may still help you save
The federal credit isn’t the whole picture. Depending on the program and your eligibility, these may still be available:
- California / state-administered rebate programs. California has run home-electrification and heat-pump rebate programs funded and distributed at the state level. Availability and funding change over time, so it’s worth checking what’s currently open.
- Utility rebates. Your electric utility may offer rebates for installing qualifying high-efficiency equipment.
- Manufacturer and financing offers. Seasonal equipment promotions and low-rate financing can meaningfully lower what you pay up front.
These programs have rules (equipment efficiency levels, income limits, and available funding) and they change frequently — so the key is to confirm what’s active before you buy.
How to make sure you actually get any savings
- Choose a qualifying system. Most rebates require specific efficiency levels — we’ll spec a system that qualifies for whatever’s currently available.
- Keep your paperwork. Model numbers, invoices, and the permit all matter for rebate claims.
- Ask before you install. We’ll tell you which current rebates and offers your project is likely eligible for — and we won’t promise a credit that no longer exists.
We’re HVAC pros, not tax advisors — confirm any tax matters with your tax professional. But we’ll make sure your equipment and paperwork are set up to qualify for the programs that are genuinely available.
Upgrade smart, save where you can
South County Air Services installs high-efficiency heat pumps across Orange County and helps you line up the rebates and offers you actually qualify for — no phantom incentives. Family-owned, owner-operated, 5.0 stars across 205+ reviews, flat-rate pricing, no commissioned upsell. For a free replacement consultation, call (949) 933-3130 or book online.
