Updated 30 August 2026. This post originally ran in 2023 and described the Inflation Reduction Act incentives as they stood then. Most of that is now out of date — including the headline federal tax credit, which no longer exists. Rather than delete it, we have rewritten it, because the wrong version is still on a lot of contractors’ websites.
First, the bad news: the federal tax credit is gone
The 30% federal tax credit worth up to $2,000 on a heat pump — Section 25C, from the Inflation Reduction Act — ended for any system placed in service after 31 December 2025. It was terminated early by the reconciliation law signed in July 2025. There was no phase-down and no transition rate. A system installed on or after 1 January 2026 does not qualify, no matter when the equipment was ordered or the contract signed.
It matters that “placed in service” means installed and running, not purchased.
If you are reading a page that still offers you a $2,000 federal credit on a heat pump, that page has not been updated. There are a lot of them.
What is actually left
Three real routes, and which one applies to you depends mostly on who sends your electricity bill. That single fact decides more than anything else on this page.
If Puget Sound Energy is your electric utility
This is Duvall and the King County side of our area.
- Electric resistance to heat pump — $1,500. For replacing baseboard, wall heaters, ceiling cable or an electric forced-air furnace with a qualifying ducted or ductless air-source heat pump.
- Zonal electric to ductless — $800. For a qualifying ductless system replacing zonal electric heat. The system has to be a true variable-speed inverter mini-split or multi-split, at least ¾ ton in heating, and at least one head must go in the main living area — bedroom-only installs do not qualify, and neither does anything using ducting of any length.
- Efficiency Boost — up to $2,400 on top, based on household income.
One thing to know: as of 2 April 2026, PSE requires the work to be done by a PSE-certified installer. Genesis is a PSE Trade Ally, so that is covered — but it is worth asking any contractor you are considering, because it is new and it disqualifies a lot of them.
If you are in Duvall, there is a much bigger one
PSE runs a Duvall-only program worth up to $8,000 to replace a natural gas heating system with an electric heat pump. It is not the statewide rebate. Conditions:
- Current PSE single-family residential customer; multifamily and commercial excluded.
- Primary heat must be PSE natural gas — furnace, wall heater or boiler. Existing heat pump means you are not eligible.
- Targeted at specific neighborhoods inside ZIP codes 98019 and 98014. PSE verifies the address, so check yours before you plan around it.
- Equipment must be AHRI certified.
- Installed by a PSE Trade Ally or REP — which we are.
- Application within 30 days of install. This is the one people lose. We would rather file it while we are still on site.
More on our Duvall page.
If Snohomish County PUD is your electric utility — read this carefully
This is Monroe, Snohomish, Lake Stevens, Everett, Sultan, Gold Bar and most of the valley.
The PUD pays $1,800 to convert electric resistance heat to a ducted heat pump, or $2,500 for a qualifying inverter system. Those are good numbers and you should know about them.
We cannot get them for you, and we would rather say so here than on the phone. The PUD requires the contractor — not the homeowner — to submit the application and receive the money, then pass it through on your invoice, and that requires a specific rebate registration. Genesis does not hold it.
Worth being precise, because it is easy to check and easy to misread: Genesis is listed in the PUD’s contractor directory as a mechanical contractor. That listing is not the same thing as being registered to file rebates, and we are not going to let the first fact imply the second.
So: if that rebate is the deciding factor for your project, ask any contractor you are considering whether they can file the PUD rebate paperwork for you — not just whether they are PUD-listed. Call the PUD Energy Hotline on 425-783-1700 and they will confirm who can. That is the honest answer and we will not be offended.
If you would rather have us do the work anyway, tell us — we will look at what we can do on price so you can compare the two properly. What we will not do is let you find out about this after you have signed something.
Income-qualified: the state HEAR program
Washington’s Home Electrification and Appliance Rebates program, run by the Department of Commerce, covers heat pumps, heat pump water heaters, panel upgrades, insulation and air sealing for households at or below 150% of Area Median Income.
It is being phased in region by region through 2026 and is administered locally, so both availability and amounts depend on where you are and who is administering it. If your household might qualify, contact WA Commerce or your local administrator before you commit to anything — this one can be worth more than everything else on this page combined.
Do not forget the rebate nobody administers
The largest saving on most of these projects is not a rebate at all — it is the running cost.
Electric resistance heat gives you roughly one unit of heat per unit of electricity. A modern heat pump gives you roughly three. On a house currently heated by baseboard, that difference repeats every cold month for the life of the system, and it does not require an application, an inspection or anyone’s approval.
Baseboard also cannot cool. A heat pump solves both problems with one piece of equipment, which is why we recommend it more often up the valley than anywhere else we work.
If the number is still the obstacle
We work with Synchrony and Hearth, and the real monthly figures are on our financing page — calculated, not estimated, and they include the lender’s fee rather than hiding it. There is no prepayment penalty on any of the plans.
A caution about everything above
Rebate amounts, efficiency thresholds and eligibility rules change, sometimes mid-year and sometimes with little notice — the federal credit vanishing is the obvious example. Everything here was checked on 30 August 2026. Before you plan a project around any figure on this page, confirm it directly with the program:
- Snohomish County PUD — Energy Hotline, 425-783-1700
- Puget Sound Energy — pse.com
- WA Department of Commerce — HomeRebates@Commerce.wa.gov
And if you want someone to walk through which of these actually apply to your house before you spend a Saturday on it, call us. We will tell you where you stand even if the answer sends you to somebody else.