Heat Pump Rebates Montgomery County PA: What’s Still Available in 2026

If you’ve read about a $2,000 federal tax credit for heat pumps, here’s the short version: it’s gone for new installs. Congress ended the federal Energy Efficient Home Improvement Credit, known as Section 25C, for equipment installed after December 31, 2025.

That doesn’t mean you’re on your own. Heat pump rebates in Montgomery County PA now come mainly from your electric utility, plus financing and the occasional manufacturer promotion. Here’s what changed, what’s still available, and how to plan a heat pump project this heating season.

What happened to the federal heat pump tax credit?

From 2023 through 2025, homeowners could claim 30% of the cost of a qualifying heat pump, up to $2,000 a year, under Section 25C. Federal legislation passed in 2025 ended the credit early. Equipment installed after December 31, 2025 doesn’t qualify.

If your heat pump was installed in 2025, talk to your tax preparer about whether you can still claim it on your 2025 return.

You’ll still see websites, ads and older blog posts describing the credit as available. Some of our own older posts did too, and we’ve updated them. If a quote for a 2026 installation counts a federal tax credit in the price, ask for it to be removed.

What heat pump rebates are still available in Montgomery County?

Pennsylvania’s Act 129 requires the state’s large electric utilities to run energy-efficiency programs, and those programs fund equipment rebates. PECO, the electric utility for most Montgomery County homes, runs these programs in multi-year phases.

Phase V began on June 1, 2026. Rebate amounts and qualifying equipment can change from one phase to the next, so check PECO’s current rebate page before you buy, not after. Your electric bill shows which utility serves your home.

A few things are usually true of utility rebates:

• The equipment has to meet an efficiency requirement, so not every heat pump qualifies.
• There’s paperwork, including model numbers and proof of installation.
• There’s a deadline after installation to apply.

Financing and manufacturer promotions

Rebates rarely cover most of a new system, so financing matters more now that the federal credit is gone. Brothers Comfort Services offers financing options, and checking your eligibility won’t affect your credit score.

Manufacturers sometimes run seasonal promotions. We install Carrier and Mitsubishi systems, so ask during your estimate whether a current offer applies to the equipment you’re considering.

Does a heat pump still make sense without the tax credit?

For many homes, yes. The tax credit was a bonus, not the reason a heat pump works. Whether it makes sense for your home depends on a few things:

• How you heat now. Homes heating with oil, propane or electric baseboard often see the biggest change in running costs.
• The age of your current system. Replacing a furnace or AC near the end of its life is the natural moment to look at a heat pump.
• Your ductwork. Ducted systems use existing ducts. Ductless systems suit homes without them, or additions and finished spaces.
• Winter performance. Cold-climate heat pumps are built to keep heating in Pennsylvania winters. Some homeowners keep a gas furnace as backup, called a dual-fuel setup.

The honest answer comes from looking at your house, your current bills and your current equipment. That’s what a free in-home estimate is for.

How to plan a heat pump project this winter

1. Check your utility and the current rebate terms on its website.
2. Book a free estimate before your current system fails, so you’re choosing on your schedule.
3. Ask which quoted equipment qualifies for current rebates.
4. Keep every document: the invoice, model and serial numbers, and installation date.
5. Apply for rebates promptly after installation.

Talk to a local heat pump installer

Brothers Comfort Services has installed and serviced heating and cooling systems around Ambler and across Montgomery County for more than 25 years. If you’re weighing a heat pump this winter, we’ll look at your home, explain your options plainly, and give you a free estimate.

Call (215) 498-0444 or request your free estimate.

Can I still get the federal heat pump tax credit in 2026? No. The federal Section 25C credit ended for heat pumps installed after December 31, 2025. If yours was installed in 2025, ask your tax preparer about claiming it on your 2025 return.

Does PECO still offer heat pump rebates? PECO runs rebate programs under Pennsylvania’s Act 129. Its current phase, Phase V, began June 1, 2026. Check PECO’s website for current amounts and qualifying equipment before you buy.

How do I know if a heat pump qualifies for a rebate? Utility rebates usually require equipment that meets a set efficiency rating. Ask your installer which quoted models qualify, and confirm on your utility’s rebate page.

Is a heat pump worth it without the tax credit? Often, yes, especially if you heat with oil, propane or electric baseboard, or your current system is near the end of its life. A free in-home estimate is the best way to find out for your home.