The federal tax credit that used to knock up to $2,000 off a heat pump installation is gone — it expired at the end of 2025, and it doesn’t apply to anything installed in 2026 or later. If you’ve been holding off on a heat pump upgrade waiting to see how the numbers shake out, that’s the first thing to know.
The second thing to know is that it doesn’t mean the money disappeared. Puget Sound Energy and several city and regional programs are still putting real dollars toward heat pump conversions right now — you just have to know which program applies to your address, your existing system, and your household, and you have to use a contractor who’s actually approved to process it. Mauro Electric is an enrolled PSE Trade Ally and an approved installer for both Seattle’s Clean Heat Program and Energy Smart Eastside, so we can walk you through which of these actually applies to your home rather than you trying to piece it together from three different program websites.
PSE’s Hybrid Heat Pump Rebate — $1,500
If you have a gas furnace and want to add a heat pump alongside it rather than replace it outright — a “hybrid” or dual-fuel setup, where the heat pump handles most of the heating and the furnace kicks in on the coldest days — Puget Sound Energy offers a $1,500 rebate on that installation.
The catch that trips people up: PSE requires the installation to be done by a PSE Recommended Energy Professional (REP) or PSE Trade Ally. Rebate applications from non-approved contractors don’t qualify, no matter how good the install is. Mauro Electric is enrolled as a PSE Trade Ally, so this rebate is something we can help you claim directly rather than leaving you to sort out the paperwork after the fact.
Seattle’s Clean Heat Program — Up to $6,000
If you’re in Seattle and currently heating with oil, the city’s Clean Heat Program is built specifically for you. It pays a $2,000 base rebate for converting an oil furnace to a heat pump, and on top of that, households in the 81–150% Area Median Income range can qualify for an additional income-based bonus of up to $4,000 — bringing the total to as much as $6,000.
That income-bonus tier is currently set to run through May 30, 2027, so there’s real time to plan around it rather than needing to rush a decision. As with PSE’s program, the rebate has to go through an approved contractor — Mauro Electric is approved for Seattle’s Clean Heat Program.
Energy Smart Eastside — Up to $6,000
If you’re on the Eastside — Kirkland, Bellevue, Issaquah, Mercer Island, Redmond, or Sammamish — Energy Smart Eastside is the equivalent program for your area. It pays a $1,000 base rebate, with an additional income-based bonus of up to $5,000 for qualifying households, for a combined total of up to $6,000.
One detail worth knowing before you plan around the top number: that $5,000 bonus tier specifically requires a fully-electric heat pump system with no furnace backup. A hybrid/dual-fuel setup (heat pump plus a gas furnace for backup) only qualifies for the $1,000 base rebate under this program, not the full bonus. If maximizing the rebate is a priority, that’s worth factoring into which system makes sense for your home. Mauro Electric is an approved installer for Energy Smart Eastside as well, so we can walk through both the electrical and the rebate side of that decision with you.
Which Program Actually Applies to You?
These three programs aren’t interchangeable — which one (or ones) apply depends on where you live and what you’re currently heating with:
- Gas furnace, anywhere in PSE’s service area, want to add a heat pump alongside it: PSE’s Hybrid Heat Pump rebate ($1,500).
- Oil furnace, in Seattle: Seattle’s Clean Heat Program (up to $6,000, income-dependent).
- Any qualifying conversion in Kirkland, Bellevue, Issaquah, Mercer Island, Redmond, or Sammamish: Energy Smart Eastside (up to $6,000, income-dependent, with the top tier requiring a fully-electric system).
If you’re not sure which category you fall into, or whether you might qualify for more than one, that’s exactly the kind of thing to sort out with us before you commit to a system — the equipment choice can change which rebate tier you’re eligible for.
Why the Approved-Contractor Requirement Matters
Every one of these programs requires the work to be done by a contractor who’s actually enrolled in that specific program — it’s not enough to be a licensed electrician or HVAC contractor generally. An unenrolled contractor can still do good, code-compliant work, but the rebate paperwork simply won’t go through on their end. Since Mauro Electric is enrolled in all three programs above, the rebate process is something we handle as part of the job rather than something you have to figure out separately after the installation is already done.
Mauro Electric is a licensed Washington electrical contractor (MAUROEI971BA) and HVAC contractor (MAUROEH750JW), serving Snohomish and King County — including Seattle, Bothell, Bellevue, Kirkland, Everett, Lynnwood, Mercer Island, Issaquah, Snoqualmie, Mukilteo, and Edmonds. If you’re weighing a heat pump conversion and want to know exactly which rebates you qualify for before you commit to a system, reach out and we’ll walk through it with you.
