All year
The Money: Rebates Still Open, and the Credit That Ended
As of October 29, 2026, Kentucky heat pump rebates come mostly from your electric utility or co-op, $200 to $1,000 or more by program, while state HEAR rebates have not opened and the 25C credit ended for systems placed in service after 2025.
Which utility rebates are open in 2026?
LG&E and KU and Kentucky Power list heat pump rebates on their program pages, as of October 29, 2026, while AEP Ohio lists none. Every amount below is subject to change, and the LG&E and KU page shows no date, so check the program page before you sign a contract.
LG&E and KU. The LG&E and KU residential rebates page lists $400 for an air-source heat pump and $400 for a ductless heat pump, for ENERGY STAR certified equipment, as of October 29, 2026, subject to change. You must be a residential customer on rate RS, RTOD-D, RTOD-E, RGS or VFD, and the utility notes that not all ENERGY STAR equipment qualifies.
Kentucky Power. The Kentucky Power EnergyAdvantage incentive guide (dated July 2025, linked from the EnergyAdvantage page) lists $400 for an air-source heat pump at 15.2 SEER2 and 7.8 HSPF2 or better, and $500 at 16.2 SEER2 and 7.8 HSPF2, as of October 29, 2026, subject to change. Ductless systems at 16.2 SEER2 and 7.8 HSPF2 get $200 for a single zone or $400 for multi-zone. The home must already have electric heat, fuel switching is not allowed, and a licensed contractor must do the installation.
AEP Ohio. AEP Ohio's savings programs page lists no heat pump rebate, as of October 29, 2026. Its income-qualified HELP program says applications are paused for 2026.
Duke Energy. Duke Energy's program pages for Kentucky and Ohio could not be read on 2026-10-29, so check duke-energy.com directly.
What do the Kentucky co-ops offer?
East Kentucky Power Cooperative's member co-ops list the largest amounts among the Kentucky programs read for this page, but each co-op sets its own rules. EKPC's energy efficiency page lists, through participating co-ops, $500 for replacing a ducted heat pump with an ENERGY STAR model, $1,000 for an ENERGY STAR cold-climate heat pump, and up to $1,000 for replacing baseboard, ceiling cable, thermal storage or other electric resistance heat, all as of October 29, 2026 and subject to change. Every one is for electrically heated homes only.
The resistance-heat retrofit rebate has two tiers on EKPC's page: $750 for a heat pump at the federal minimum (14.3 SEER2 and 7.5 HSPF2 for a split system) and $1,000 for ENERGY STAR (15.2 SEER2 and 7.8 HSPF2). That is the program built for homes still on strip or baseboard heat, where DOE's 2022 Energy Saver Guide puts the drop in heating electricity at roughly 50%; the running costs page shows the math.
Three member co-op pages show how details differ (as of October 29, 2026; subject to change):
- Owen Electric lists $750 or $1,000 for the retrofit, $500 per indoor head for ENERGY STAR mini-splits (up to three), and $500 or $1,000 for its High Efficiency Heat Pump rebate.
- Blue Grass Energy lists $750 or $1,000 for replacing resistance heat that is at least two years old, and $500 per indoor head for ENERGY STAR mini-splits.
- South Kentucky RECC lists $500 for an ENERGY STAR heat pump and $1,000 for a cold-climate model that appears as a Cold Climate Heat Pump in the ENERGY STAR directory. Its older retrofit page still quotes $750 and pre-2023 ratings, so ask the co-op which page is current.
The cold-climate tier follows ENERGY STAR's key product criteria, including 70% of rated 47°F capacity at 5°F; the cold-climate models page asks whether a Kentucky house needs one.
What about TVA EnergyRight?
TVA EnergyRight runs the rebates for TVA-served local power companies in Tennessee and parts of western and southern Kentucky. Its heat pump page lists $500 for a heat pump at 15 SEER2 or higher and $800 at 17 SEER2 or higher, and its mini-split page lists $800 for a ductless unit at 17 SEER2 or higher, as of October 29, 2026, subject to change.
The condition that matters: every TVA EnergyRight rebate job must be done by a member of the Quality Contractor Network and meet TVA standards in effect on the installation date. The contractor submits the rebate request for you, so ask whether the company is in that network before you sign.
What happened to the state HEAR rebates?
The federal Home Energy Rebates are run state by state, and most states here had not opened them as of October 29, 2026. DOE's Home Energy Rebates page says only that rebates are available in select states and sends readers to their state energy office.
| State | Status | Where to check |
|---|---|---|
| Kentucky | Not open; awaiting DOE approval | energyrebates.ky.gov |
| Indiana | Open since May 14, 2025 (Indiana Energy Saver Program) | in.gov/oed |
| West Virginia | HOMES pilot underway; HEAR waitlist only | energywv.org |
| Tennessee | Not open; TVA to run it once approved | tn.gov state energy office |
| Ohio | Could not be confirmed | Ohio Department of Development |
Kentucky. The Kentucky Home Energy Rebates site warns that the rebates are not yet available, that anyone offering them is misinformed, and that the state must get DOE approval before launch.
Indiana. The Indiana Office of Energy Development says the Indiana Energy Saver Program launched May 14, 2025. Its HEAR side is limited to households earning under 150% of area median income, and the discount is applied through a qualified contractor. The program's own FAQ lists up to $8,000 for an ENERGY STAR heat pump in the Indiana Energy Saver Program, as of October 29, 2026, subject to change. OED also warns that program contractors do not go door to door.
Tennessee. The Tennessee Office of Energy Programs says funding is not yet available and that the state cannot offer its appliance rebates retroactively. Plan on HEAR rebates covering only work done after a program opens.
West Virginia and Ohio. West Virginia's Office of Energy has a HOMES pilot and a HEAR waitlist, and its HEAR description does not list heat pumps for space heating. Ohio's program pages could not be reached on October 29, 2026, so check with the Ohio Department of Development. The federal income tax credits ended for 2026 installations; the tax credit sections below explain the dates.
The federal Home Energy Rebates are run state by state, and most states here had not opened them as of October 29, 2026.
What usually trips up a rebate claim?
Each program has fine print, and five conditions recur across the pages read:
- The wrong equipment tier. Kentucky Power and EKPC set SEER2 and HSPF2 floors, TVA sets SEER2 floors, and LG&E and KU require ENERGY STAR. Ask for the AHRI certificate number before you sign; the ratings and cold-climate feature explains the numbers.
- The wrong starting fuel. Kentucky Power and the EKPC co-ops want homes already heated by electricity.
- The wrong installer. TVA requires a Quality Contractor Network member, Kentucky Power requires a licensed contractor, and Indiana requires a qualified program contractor. Bring the contractor questions list.
- The wrong rate or account. LG&E and KU limit rebates to five residential rates.
- Timing. Pages change without notice and state HEAR rebates are not retroactive. Screenshot the program page on the day you sign.
Is there a heat pump tax credit in 2026?
No. There is no federal heat pump tax credit for a system installed in 2026. The IRS's FAQ on Public Law 119-21, the law signed July 4, 2025, sets the end dates in a table: the Energy Efficient Home Improvement Credit (25C) is not allowed for any property placed in service after December 31, 2025, and the Residential Clean Energy Credit (25D) is not allowed for any expenditures made after December 31, 2025.
The IRS's summary of the law's provisions, last reviewed October 22, 2026, repeats both dates. Air-source heat pumps fell under 25C, the home improvement credit. The IRS 25D page lists geothermal heat pumps, solar panels and battery storage under 25D, and it ended at the same time.
If a contractor's quote or a website mentions a federal credit for a heat pump installed this winter, that line is out of date. The running costs page is a better place to start the money math for 2026.
There is no federal heat pump tax credit for a system installed in 2026.
What did the 25C credit pay before?
For heat pumps placed in service from 2023 through 2025, 25C paid 30% of qualified costs, up to $2,000 a year. The IRS 25C page says the credit equals 30% of certain qualified expenses beginning January 1, 2023, with a separate $2,000 yearly limit for qualified heat pumps, water heaters and biomass stoves or boilers; its list of qualified property includes electric or natural gas heat pumps and heat pump water heaters.
To qualify, a heat pump had to meet or exceed the highest efficiency tier of the Consortium for Energy Efficiency in effect at the start of the year it was installed, not counting any advanced tier. That bar sat above the federal minimums explained on the ratings and cold-climate feature.
That history matters only if you are filing for a 2025 tax year or amending a return. One wording quirk on the IRS 25C page: in one place it says property placed in service before December 31, 2025, while the FAQ says the credit is not allowed after December 31, 2025. The FAQ is the controlling text, and a tax professional can confirm how it applies to your return.
| Credit | What it covered | Rate and cap (2023–2025) | Status for 2026 installs |
|---|---|---|---|
| 25C, Energy Efficient Home Improvement | Air-source heat pumps, heat pump water heaters | 30%, up to $2,000 a year for heat pumps | Not allowed after Dec. 31, 2025 (placed in service) |
| 25D, Residential Clean Energy | Geothermal heat pumps, solar panels, wind, batteries | 30% of costs, 2022–2025 installs | Not allowed for expenditures after Dec. 31, 2025 |
| Utility and state rebates | Varies by program | Varies | Some open; see the rebate sections above |
What if the install finished in January 2026?
If the system went into service in January 2026, the 25C credit does not apply, even if you signed and paid in 2025. 25C turns on the date the property is placed in service, and the cutoff is December 31, 2025.
The IRS spells out the same logic for 25D in question 7 of its FAQ: an expenditure counts as made when the original installation is completed, so installation completed after December 31, 2025 is treated as a 2026 expenditure and blocks the credit. Air-source heat pumps fall under 25C rather than 25D, but the practical result is the same for a late install: the calendar date the system was finished and running is what counts.
Keep the paperwork anyway. The invoice, the completion date and the AHRI certificate are what a tax preparer would ask for if your situation is borderline, and the same documents are what utility rebate programs usually want. This site does not give tax advice; for your own return, talk with a tax professional.
Are any federal rebates still possible?
Yes, in a few places. The federal Home Energy Rebates, funded under the Inflation Reduction Act and run by each state, are separate from the tax credits and did not end with them. DOE's Home Energy Rebates page says they are available in select states.
The state-by-state status is in the HEAR section above; as of October 29, 2026, Kentucky's program said its rebates were not yet available. None of these state rebates pays retroactively for a heat pump already installed. Tennessee's page also points households to active federal programs such as the Weatherization Assistance Program.
Which pages still show the old credit?
Several official pages still describe heat pump tax credits as though nothing changed, as read on October 29, 2026. That is why a quick web search can turn up confident but outdated answers.
- ENERGY STAR's air-source heat pump page still describes the federal credit with an end date in 2032, a date written before the 2025 law. The IRS FAQ controls.
- Indiana's Office of Energy Development homeowner page says some residential tax credits are available for qualifying improvements made after December 31, 2021, with no end date.
- West Virginia's Office of Energy rebate page links to a section headed as current federal tax credits for energy efficiency.
- The IRS 25C page itself mixes "before" and "after" December 31, 2025 in different places.
The rule of thumb: for a federal credit, trust the IRS FAQ and the IRS provisions summary, and check their review dates. For equipment ratings, ENERGY STAR's key product criteria are still current; it is only the tax line that went stale.
Loose ends
Smaller questions readers ask about this subject, answered briefly.
Can you combine a utility rebate with a state HEAR rebate?
None of the utility pages read for this site addresses stacking, and Kentucky's HEAR program is not open. Ask the utility and, where a state program is open, the program itself before counting on both.
Does a mini-split qualify for Kentucky rebates?
Several programs list ductless systems: LG&E and KU at $400, Kentucky Power at $200 or $400, and TVA EnergyRight at $800, as of October 29, 2026 and subject to change. Owen Electric and Blue Grass Energy list amounts per indoor head.
Is there a rebate for switching from gas to a heat pump in Kentucky?
Kentucky Power bars fuel switching, and the EKPC co-op rebates are for electrically heated homes. LG&E and KU's page does not mention a heating-fuel condition, so ask the utility.
Are there rebates for income-qualified households?
LG&E and KU run one for households at or below 200% of the federal poverty level, and Kentucky Power's Targeted Energy Efficiency Program works through community action agencies.
Can I still claim a heat pump installed in 2025?
The credit applied to qualified heat pumps placed in service in 2025, on that year's return, subject to the IRS rules and the $2,000 yearly cap. Ask a tax professional about your own filing.
Does a heat pump water heater still get a federal credit?
Not for 2026 installs. Heat pump water heaters were part of 25C, which is not allowed for property placed in service after December 31, 2025.
Is the credit coming back?
Nothing on the IRS pages read on October 29, 2026 says so. Check the IRS pages linked here, and their review dates, before relying on any other report.