Program status checked September 12, 2026. Federal homeowner credits 25C and 25D are unavailable for new installations after December 31, 2025. Texas HEAR and HOMES rebates have not launched, according to SECO's August 21, 2026 update. Confirm current utility funding before committing to work.
Official sources: IRS: 25C, IRS: 25D, SECO: Texas rebate status.
How heat pumps work
Heat pumps transfer heat to provide heating and cooling. Performance depends on outdoor temperature, the equipment, installation and the home. Ask an installer to compare heating capacity, cooling performance and operating costs using your actual electricity and fuel rates.
Common heat-pump options
- Ducted air-source systems use ductwork to serve the home.
- Ductless mini-splits may suit additions or homes without suitable ducts.
- Cold-climate models have specific low-temperature capabilities; check the equipment data and backup requirements.
- Geothermal systems use a ground loop and require a site-specific design and installation budget.
Check utility eligibility before replacing equipment
Do not assume a gas-to-electric conversion, a particular SEER2 or HSPF2 rating, or an ENERGY STAR label guarantees an incentive. Confirm the exact system, existing heat source, approved provider, funding and application sequence with your utility.
Federal and Texas program status
No 25C or 25D homeowner credit is available for a new 2026 installation. Texas HEAR and HOMES remain unavailable as of September 12, 2026. Do not sign a contract expecting a future HEAR rebate to make the system free.
Compare complete quotes
- Include electrical, duct and other required work.
- Ask for cooling and heating load calculations and commissioning.
- Show each confirmed discount separately.
- Review backup heat, noise, maintenance and warranty terms.
Further reading: Oncor heat-pump program information. Program status checked September 12, 2026; confirm current terms with the administrator before purchase.