Critical Update for 2026
Mini Split Rebates and Tax Credits in 2026: What Actually Remains
The Section 25C Tax Credit Has Expired
The Energy Efficient Home Improvement Credit (Section 25C) expired on December 31, 2025. Mini splits installed in 2026 are not eligible for the $2,000 federal tax credit that was available from 2023 through 2025.
Many competing guides still reference this credit. If a guide tells you that you can claim a $2,000 tax credit for a mini split in 2026, it has not been updated. Check the date of any guide you read.
HOMES Rebate Program (Up to $8,000)
The Home Owner Managing Energy Savings (HOMES) rebate program is funded by the Inflation Reduction Act and administered by individual states. It provides rebates for whole-home energy efficiency improvements, including heat pump HVAC systems like mini splits.
Maximum Rebate
Up to $8,000
States Active (early 2026)
~23 states
How it works: You install an ENERGY STAR-certified heat pump system and demonstrate energy savings through a home energy audit. The rebate amount depends on the projected energy savings: 50% of project cost for 20% energy reduction, or 80% of project cost for 35%+ reduction, up to the maximum.
How to check your state: Visit the Department of Energy HOMES rebate tracker or your state energy office website. Program availability and specific terms vary by state. Some states launched in 2024, others are still rolling out in 2026.
HEEHRA Program (Income-Based)
The High-Efficiency Electric Home Rebate Act (HEEHRA) provides additional rebates for lower-income households. These stack on top of HOMES rebates.
| Household Income | Rebate Coverage | Max for Heat Pump HVAC |
|---|---|---|
| Under 80% of Area Median Income | Up to 100% of project cost | $8,000 |
| 80% to 150% of Area Median Income | Up to 50% of project cost | $8,000 |
| Over 150% of Area Median Income | Not eligible for HEEHRA | $0 |
Area Median Income (AMI) varies by location. A household at 80% AMI in the median US market earns roughly $55,000 to $65,000 for a family of four. Check your local AMI using the HUD income limits tool.
HOMES/HEEHRA Status by State (Early 2026)
Programs are rolling out on different timelines. This table covers the largest states.
| State | HOMES Status | HEEHRA Status |
|---|---|---|
| California | Live | Live |
| New York | Live | Live |
| Texas | Pending | Pending |
| Florida | Pending | Not yet |
| Pennsylvania | Live | Pending |
| Illinois | Live | Live |
| Ohio | Pending | Pending |
| Georgia | Live | Pending |
| Massachusetts | Live | Live |
| Colorado | Live | Live |
| Washington | Live | Live |
| Arizona | Pending | Not yet |
Utility Company Rebates
Many electric utilities offer their own rebates for energy-efficient HVAC equipment, separate from federal programs. These typically range from $300 to $1,500 per system.
Key point: Utility rebates often stack with HOMES/HEEHRA rebates. You could potentially receive $8,000 in federal rebates plus $1,000+ from your utility for the same installation.
Search "[your utility name] heat pump rebate" or check the DSIRE database (Database of State Incentives for Renewables and Efficiency) to find programs in your area.
Geothermal Exception
Geothermal heat pumps (ground-source) still qualify for a 30% federal tax credit through 2032 under Section 25D. This is a different program from the expired Section 25C. Geothermal systems cost $15,000 to $35,000 installed but offer the highest efficiency of any heating/cooling technology. This is not a mini split, but it is worth knowing about if you are comparing whole-home options.
What Qualifies for Rebates
- 1. ENERGY STAR certified: The mini split must meet ENERGY STAR efficiency requirements. Most units from major brands qualify. Check the ENERGY STAR product finder.
- 2. Licensed contractor installation: Most rebate programs require a licensed HVAC contractor to perform the installation. DIY installations may not qualify.
- 3. Home energy audit (HOMES): The HOMES program typically requires a pre- and post-installation energy audit to verify savings.
- 4. Proper documentation: Keep all receipts, contractor invoices, product spec sheets, and audit reports. Rebate processing requires documentation.
How to Maximize Your Savings
1. Stack programs: HOMES + utility rebate can exceed $9,000 in total rebates on a single installation.
2. Install during shoulder season: Spring and fall installations are 10 to 15% cheaper due to reduced demand.
3. Bundle efficiency upgrades: Some HOMES programs offer larger rebates when you combine HVAC with insulation, air sealing, or water heater upgrades.
4. Get multiple quotes: Three quotes minimum. Make sure each quote includes the same scope of work so you are comparing apples to apples.
5. Check income eligibility: HEEHRA can cover up to 100% of project cost for qualifying households. Even moderate-income households may qualify for 50% coverage.