Active 2026 programs: Clark PUD heat pump rebates up to $2,500, Mitsubishi/AS manufacturer rebates ($300-$700 seasonal), NW Natural gas furnace rebates up to $700, Section 25D geothermal credit at 30% uncapped through 2032. Expired: Section 25C heat pump tax credit (ended Dec 31, 2025). Coming mid-2026: Washington HEAR program up to $8,000 for qualifying income brackets. Most stackable combination: Clark PUD + manufacturer + HEAR for income-eligible heat pump installs, potentially $6,500-$11,000 total back.
The rebate landscape changed significantly between 2024 and 2026. The federal 25C tax credit that drove most heat pump conversions for the past two years quietly expired. Several state and utility programs filled in around it. The result: rebate value is still available, but it is harder to find and easier to miss.
Here is the current, accurate picture for Clark County homeowners in 2026.
What is active right now (2026 programs).
Clark Public Utilities heat pump rebate program.
The flagship local rebate. Active and well-funded for 2026:
- Ducted heat pump replacing electric resistance heat: up to $2,500
- Ducted heat pump replacing gas or oil furnace: up to $1,200
- Ductless heat pump (first head): up to $1,500
- Each additional ductless head, up to 4 heads: $250
- Heat pump water heater: up to $500 (separate program, often stacked)
Requirements: equipment on Clark PUD's approved list (most premium Mitsubishi and American Standard models qualify), Manual J for systems over 3 tons, permit pulled, filed within 90 days of install. We covered the full program in our dedicated Clark PUD guide.
Manufacturer rebates (Mitsubishi and American Standard).
Both manufacturers run rolling seasonal programs. As of mid-2026:
- Mitsubishi Diamond Contractor seasonal rebates: typically $200-$500 off select Hyper-Heat ductless installs in spring and fall
- American Standard Authorized Dealer rebates: typically $500-$1,000 off Platinum-tier installs
These programs come and go monthly. We always check active manufacturer programs at quote time and apply whatever is current. The amounts are usually small enough that they should not drive your timing decision, but worth capturing.
NW Natural gas equipment rebates.
For homeowners staying on gas, NW Natural's program covers:
- 95% AFUE+ gas furnace: up to $500
- 97% AFUE+ condensing gas furnace: up to $700
- Tankless water heater: $500-$700
- Smart thermostat (Nest, Ecobee, Honeywell T-series): $50
Stackable with manufacturer rebates from American Standard. Not stackable with Clark PUD heat pump rebates (different fuel, different utility).
Section 25D geothermal tax credit (still active through 2032).
The Residential Clean Energy Credit covers 30% of total project cost, uncapped, for geothermal heat pump installations. Still very much active, with no current expiration.
For a Vancouver-area geothermal install in the $35,000-$60,000 range, that is a $10,500-$18,000 federal credit. Geothermal is not the right answer for every home — it requires either a large yard for horizontal loops or a deep well for vertical — but where it fits, the math is uniquely strong. We do not install geothermal directly; we refer to a Clark County specialist when it makes sense for the lot.
What expired (the big one).
Section 25C — Energy Efficient Home Improvement Credit.
The federal 25C tax credit, which provided up to $2,000 back on qualifying heat pump installations, expired December 31, 2025 and was not renewed for air-source heat pumps. We covered the full status in our 25C expiration breakdown.
One important exception: if your heat pump was installed and placed in service on or before December 31, 2025, you can still claim the credit on your 2025 federal tax return when you file in 2026. Keep the manufacturer's certification statement and the invoice; you will need both for IRS Form 5695.
What is coming (programs not yet launched).
HEAR (Home Electrification and Appliance Rebates).
Part of the Inflation Reduction Act. Federal funding to states, administered by state energy offices. In Washington, that is the WA State Department of Commerce.
Maximum amounts (income-qualifying):
- Heat pump install: up to $8,000
- Heat pump water heater: up to $1,750
- Electrical panel upgrade: up to $4,000
- Insulation, sealing, ventilation: up to $1,600
Income eligibility:
- Households below 80% area median income (AMI): 100% rebate up to the cap
- Households at 80-150% AMI: 50% rebate up to the cap
- Households above 150% AMI: not eligible
For reference, 2026 Clark County AMI for a family of four is around $112,000. The 80% threshold is roughly $90,000; the 150% threshold is roughly $168,000. Many middle-income Vancouver families qualify at the 50% level.
Current status: Funding allocated, administrative buildout ongoing. WA Commerce has been targeting a broader public launch in mid-to-late 2026. We track this monthly and will update existing clients when applications open.
HER (Home Efficiency Rebates).
The companion IRA program. Performance-based — rebates tied to whole-home energy savings measured by a pre/post energy audit. Less directly applicable to a heat pump install alone, but relevant for homeowners doing comprehensive efficiency upgrades.
The maximum stacking scenarios.
Here is what is actually possible in 2026 for different homeowner situations.
Scenario 1: Replacing electric baseboards with ductless heat pump (income-qualifying).
- Clark PUD: $1,500 (first head) + $250 × 3 (additional heads) = $2,250
- Mitsubishi manufacturer rebate: $400
- HEAR (when launched): up to $8,000
- Total potential rebate: $10,650
For a $22,000 4-zone ductless install, that brings net cost down to $11,350.
Scenario 2: Gas-to-heat-pump ducted conversion (above income threshold).
- Clark PUD: $1,200
- American Standard manufacturer rebate: $600
- 25C: $0 (expired)
- HEAR: $0 (above income)
- Total rebate: $1,800
For an $18,000 ducted heat pump install, net cost is $16,200.
Scenario 3: Geothermal install (any income).
- Section 25D federal credit: 30% of total project = $12,000-$18,000
- Clark PUD: $1,200 (counts as electric heat replacement)
- Manufacturer: variable
- Total rebate: $13,500-$19,500
This is the strongest rebate stack available in 2026. Geothermal only makes sense for specific homes.
Scenario 4: Oil-to-heat-pump conversion (income-qualifying).
- Clark PUD: $1,200
- Manufacturer rebate: $500
- HEAR (when launched): up to $8,000
- Total potential rebate: $9,700
This is the second-strongest stack, combined with the typical $1,500-$3,500 annual fuel savings on oil. See our oil conversion guide.
Common mistakes that cost real money.
1. Missing the 90-day Clark PUD filing window.
The most common reason rebates get rejected. Clark PUD requires the application within 90 days of installation. Missed deadline = forfeited rebate. We file on behalf of every install we do.
2. Using a non-approved contractor.
Clark PUD requires the installer to be on their approved list. Several Vancouver contractors are not. If your installer is not approved, the rebate cannot be claimed regardless of equipment quality.
3. Installing equipment not on the approved list.
Most premium Mitsubishi and American Standard equipment qualifies. Most entry-level competitor brands do not. Cheap installations often look cheaper because they use non-qualifying equipment, which costs you the rebate.
4. Skipping the Manual J for larger systems.
For ducted systems over 3 tons, Clark PUD requires a Manual J load calculation submitted with the application. "Rule of thumb" sizing documentation is rejected. We do Manual J on every install.
5. Missing the AHRI certificate.
The AHRI reference number proves your outdoor unit and indoor coil were matched and tested together. Without it, equipment efficiency cannot be certified for rebate purposes. Reputable contractors provide it automatically.
6. Forgetting the 2025 25C credit window.
If you installed a heat pump in 2025, you can still claim the 25C credit on your 2025 federal tax return — file before April 15, 2026. The credit is up to $2,000 on a 2025 install. Keep the manufacturer certification statement and invoice.
How we handle this for our clients
On every install we do, we (1) verify the equipment is on Clark PUD's approved list before quoting, (2) include the Manual J in the rebate package, (3) provide the AHRI certificate, (4) submit the rebate application within the 90-day window on the homeowner's behalf, and (5) follow up if it stalls. The rebate value appears as a line item on every quote — you see what you are getting before signing anything.
What to ask your contractor about rebates.
Three questions that filter out contractors who do not handle rebates well:
- "Is the equipment you are quoting on the current Clark PUD approved list?"
- "Will you file the rebate application on my behalf, or do I file it?"
- "Can you show the rebate value as a line item on the quote?"
Contractors who handle rebates well answer "yes" to all three without hesitation.
The bottom line for 2026.
The rebate picture in 2026 is more fragmented than in 2024-2025, but the total value available is comparable or higher for income-qualifying households. The biggest opportunities are:
- Geothermal installs: 30% federal credit through 2032 is dramatic.
- Income-qualifying heat pump conversions: HEAR will be huge when it launches, up to $8,000 stacked on top of Clark PUD.
- Electric baseboard replacement: Maximum Clark PUD tier at $2,500 makes the math work.
- Oil-to-heat-pump: Strong fuel savings plus full Clark PUD rebate.
For most Vancouver homeowners doing standard gas-to-heat-pump or AC replacement, plan for $1,200-$2,000 in rebates after stacking — meaningful but not life-changing on a $15,000-$20,000 project. The federal 25C expiration removed about $2,000 of value that used to be available.
Want the rebate analysis built into your specific project quote? Request a quote — we run the numbers for every applicable program and show net out-of-pocket on the written estimate.