Rebates, without the sales pitch
The federal heat-pump tax credit ended December 31, 2025. Here’s what your address still qualifies for.
Some companies are still advertising credits that no longer exist. We’re not. Depending on your utility and income, real heat-pump and efficiency rebates are still live in the Walla Walla Valley — and we’ll walk you through exactly which ones apply to your home before you spend a dollar.
What changed
Are there still tax credits for heat pumps in 2026?
The short answer: the federal credits are gone, but utility rebates are live. The 25C Energy Efficient Home Improvement Credit and the 25D Residential Clean Energy Credit were terminated for equipment placed in service after December 31, 2025. If an ad promises you a federal tax credit on a new heat pump this year, that information is out of date.
What’s still real: rebates from the utilities that serve the valley, and Washington’s income-qualified HEAR program. Which ones apply to you depends on who supplies your electricity or gas, and where you live. That’s the honest math we run on every quote — current program amounts confirmed at the time of your install, never a stale flyer figure.
Live programs in the valley
Your utility decides your rebate. Here’s the map.
Pacific Power — wattsmart®
Walla Walla & College Place electric customersHeat pumps, ductless mini-splits, smart thermostats, weatherization
Rebate amounts vary by equipment efficiency tier — we confirm current amounts for your install before you sign anything.
Columbia REA
Rural Walla Walla & Columbia County co-op membersHeat-pump conversions and upgrades
Conversion rebates have run up to roughly $1,560 — the exact figure depends on your existing system and the current program year.
Cascade Natural Gas
Natural-gas customers in the valleyHigh-efficiency (≥95% AFUE) furnace upgrades
If you're staying on gas, a qualifying high-efficiency furnace can earn a rebate — we handle the paperwork.
Milton-Freewater City Light & Power
Milton-Freewater, OR municipal customersHeat-pump rebates and conservation loans
One of the valley's overlooked programs — Oregon-side homeowners often qualify for both a rebate and low-interest financing.
WA HEAR (income-qualified)
Washington households at or below 150% of area median incomeHeat-pump installation support through WA Commerce
A Climate Commitment Act-funded program for income-qualified households. We'll tell you honestly whether you're likely to qualify.
Program amounts and eligibility change between program years. We confirm the current figures for your address and equipment before you approve any work — the price and the rebate you’re shown are the ones you get.
Rebate questions, answered
Are there still tax credits for heat pumps in 2026?
The federal 25C and 25D tax credits ended for equipment placed in service after December 31, 2025. Any company still advertising a federal heat-pump tax credit is advertising something that no longer exists. The good news: real utility rebates are still live in the Walla Walla Valley — Pacific Power wattsmart, Columbia REA, Cascade Natural Gas, Milton-Freewater City Light & Power, and Washington's income-qualified HEAR program.
What rebates does Pacific Power offer for heat pumps?
Pacific Power's wattsmart program offers rebates on qualifying heat pumps, ductless mini-splits, smart thermostats and weatherization for its Washington electric customers. Amounts depend on the equipment's efficiency tier and the current program year, so we verify the exact figure for your specific install before you commit.
Does Milton-Freewater offer heat pump rebates?
Yes. Milton-Freewater City Light & Power offers heat-pump rebates and conservation loans to its municipal utility customers on the Oregon side of the valley. Many homeowners don't know the program exists — we'll walk you through it when we quote your system.
What is the WA HEAR program and do I qualify?
HEAR (Home Electrification and Appliance Rebates) is a Washington Commerce program funded by the Climate Commitment Act that helps income-qualified households — generally at or below 150% of area median income — with heat-pump installation costs. Eligibility depends on your household income and utility; we'll give you an honest read on whether it's worth applying.
Why do some companies still advertise the federal tax credit?
Some marketing simply hasn't caught up with the law — the credits were terminated for equipment placed in service after December 31, 2025. We think you deserve the current facts before making a five-figure decision, which is why we'll never quote you savings from a program that no longer exists.
Want the honest math for your address?
Tell us your utility and what you're considering, and we'll tell you exactly which rebates apply — current amounts, confirmed before you approve anything. Call (509) 525-8073.