Utah Heat Pump Rebates in 2026: What’s Still Available Now That the Federal Tax Credit Ended

Updated June 2026. The federal heat pump tax credit (IRA Section 25C) ended December 31, 2025 — installs completed after that date no longer qualify. But Utah homeowners can still get up to $2,000 back through Rocky Mountain Power’s wattsmart utility rebate, which was refreshed in February 2026 and is fully active. Here’s exactly what’s gone, what’s still available, and how to claim it.

What Ended (and One Deadline You Can Still Hit)

• IRA 25C federal tax credit — ended Dec 31, 2025. The 30%-up-to-$2,000 credit for heat pumps applies only to systems placed in service by the end of 2025. A 2026 install does not qualify, no matter when you signed the contract.
• Still claimable for 2025 installs: if your heat pump was installed in 2025, you can still claim the credit by filing IRS Form 5695 with your 2025 return — the extension window runs through October 15, 2026. Don’t leave that $2,000 on the table.
• HOMES / HEAR income-based rebates — paused in Utah. Utah was approved for $101 million in federal home-energy-rebate funding, but the program is currently frozen pending federal funding decisions. We’ll update this page if it launches.

What’s Still Available in 2026: Utah Utility Rebates

Rocky Mountain Power wattsmart — up to $2,000

The wattsmart Homes program was refreshed on February 27, 2026 and pays up to $2,000 on qualifying heat pump installs in existing homes. You need to be a residential Rocky Mountain Power customer (rate schedules 1, 2, or 3), the equipment has to meet the program’s efficiency tiers, and the application must be submitted within 90 days of project completion. This is a rebate check — not a tax credit — so it doesn’t depend on your tax liability.

Enbridge Gas Utah ThermWise

For gas-side equipment — high-efficiency furnaces, tankless water heaters, smart thermostats — Enbridge’s ThermWise program is active for installs completed on or after January 1, 2026. Rebate amounts vary by model and efficiency tier, and the request must be postmarked within six months of installation.

The Real Math in 2026

A typical 3-ton variable-speed cold-climate heat pump install on a Wasatch Front two-story runs in the low-to-mid five figures — and the wattsmart rebate takes up to $2,000 off a qualifying system. Unlike the old tax credit, it arrives as a check that doesn’t depend on how much federal tax you owe, and it pairs with 0% financing. Every written quote we give shows the install price, the rebate, and the net number side by side — real figures, not internet averages.

What’s Required to Qualify

• Qualifying equipment tier. The wattsmart program pays by efficiency level — variable-speed cold-climate units earn the larger rebates. We spec equipment that clears the bar.
• Existing home, RMP residential service. Rate schedules 1, 2, or 3.
• The 90-day clock. The application window opens when the install is complete and closes 90 days later. Miss it and the rebate is gone — this is the single most common way Utah homeowners lose rebate money.

The Paperwork We Handle

We file the wattsmart application (and ThermWise, for gas equipment) as part of every qualifying install — model numbers, AHRI certificates, invoices, the lot. The rebate check typically arrives in 6–8 weeks. If your heat pump went in during 2025, we’ll also send you the documentation you need to claim the federal credit on your 2025 return before the October 15, 2026 extension deadline.

Bottom Line

The federal tax credit era is over, but the “no rebates left” story you may have heard is wrong: Utah’s utility rebates never went away. Up to $2,000 from Rocky Mountain Power on a qualifying heat pump — paid as a check, regardless of your tax situation — plus ThermWise on the gas side. If you’re weighing a heat pump against a straight AC replacement, read our heat pump vs furnace comparison, or get a free in-home quote — we put the current rebate numbers in writing so you see the real net price.