If you've been putting off a heat pump upgrade because of the upfront cost, 2026 is a great time to reconsider. Multiple rebate programs are currently available in Snohomish County, and they stack — meaning you can claim all of them on the same installation.

Here's a complete breakdown of every program available right now and how to maximize your savings.

Program 1: Snohomish County PUD Rebates

Snohomish County PUD (SnoPUD) offers some of the most generous heat pump rebates in Washington state. As a SnoPUD customer, you're eligible for:

Air-source heat pumps (ducted):

• Up to $1,200 per ton of cooling capacity
• A 2-ton system = up to $2,400
• A 3-ton system = up to $3,600

Ductless mini-split heat pumps:

• Up to $1,200 per ton per indoor unit
• A 2-zone system with 1-ton units = up to $2,400

Requirements:

• Equipment must meet minimum efficiency standards (currently HSPF2 ≥ 8.1 for ducted, COP ≥ 2.0 at 17°F for cold-climate)
• Installation must be performed by a licensed contractor
• Rebate application must be submitted within 90 days of installation

How to claim: Your contractor (that's us) submits the rebate application on your behalf. You receive a check from SnoPUD within 6–8 weeks of installation.

Note: SnoPUD rebate amounts and requirements change periodically. We verify current amounts before every installation. Call us for the latest figures.

Program 2: Federal Tax Credit (Inflation Reduction Act)

The Inflation Reduction Act (IRA) created a significant federal tax credit for qualifying heat pump installations. For 2026:

Amount: 30% of the installed cost, up to $2,000 per year

Qualifying equipment: Air-source heat pumps that meet the Consortium for Energy Efficiency (CEE) highest efficiency tier. Most modern cold-climate heat pumps qualify.

How it works: This is a tax credit — not a deduction. It reduces your federal tax liability dollar-for-dollar. If you owe $3,000 in federal taxes and claim a $2,000 credit, you owe $1,000.

How to claim: File IRS Form 5695 with your federal tax return. Your contractor provides the equipment documentation you need.

Important: This credit is per taxpayer per year. If your installation costs $15,000, 30% is $4,500 — but the credit is capped at $2,000. You can't carry the excess to the next year.

Program 3: Washington State Sales Tax Exemption

Washington state exempts qualifying heat pump equipment from state sales tax. This is automatic — your contractor applies it at the time of purchase.

Savings: 6.5% state sales tax + local sales tax (varies by city, typically 2–4%)

Total savings: 8.5–10.5% of equipment cost

On a $5,000 equipment purchase, this saves $425–$525.

Qualifying equipment: Air-source heat pumps, ductless mini-splits, and ground-source heat pumps that meet efficiency requirements.

Program 4: Washington State HOMES Rebate Program

Washington state is implementing the HOMES (Home Owner Managing Energy Savings) rebate program, funded by the IRA. This program provides rebates based on measured or modeled energy savings.

Amounts: Up to $8,000 for low-to-moderate income households; up to $4,000 for other households

Status: The Washington State Department of Commerce is administering this program. Check with us for current availability — rollout has been phased.

Stacking the Programs: A Real Example

Here's what the math looks like for a typical Snohomish County homeowner installing a 2-ton cold-climate heat pump:

Item	Amount
Installed cost (equipment + labor)	$9,500
SnoPUD rebate (2 tons × $1,200)	-$2,400
Federal tax credit (30%, capped at $2,000)	-$2,000
WA sales tax exemption (~9% of $5,000 equipment)	-$450
Net cost after incentives	~$4,650

That's more than 50% off the sticker price. And if you qualify for the HOMES rebate, you could go even lower.

How We Help You Navigate the Rebates

Rebate programs have specific requirements — equipment must meet efficiency thresholds, applications must be filed within deadlines, and documentation must be correct. We handle all of this for you:

• We verify that the equipment we're installing qualifies for each program
• We submit the SnoPUD rebate application on your behalf
• We provide all documentation needed for your federal tax credit
• We apply the sales tax exemption at the time of purchase
• We advise you on the HOMES program if you may qualify

You don't need to navigate this alone. When you get a quote from us, we'll show you the net cost after all applicable incentives — not just the gross price.

Act Before Programs Change

Rebate programs change. The IRA tax credits are currently authorized through 2032, but SnoPUD rebate amounts are reviewed annually. The best time to take advantage of these programs is now, while they're all available and stacking.

Call 425-610-6635 or schedule a free in-home estimate online. We serve Snohomish, Lake Stevens, Everett, Marysville, Monroe, and surrounding communities.