What it costs, what's permitted, and what to ask before you hire.
Last verified: 2026-05-30 · Data building
Likely first step
Check your electrical panel capacity
Panel / electrical
May require a panel upgrade
Complexity
Verify locally
Permit likelihood
Confirm with your building department
Rebate sensitivity
Verify current programs
Best first call
A licensed contractor for an itemized quote
Utility impact
Electric: Austin Energy; gas: Texas Gas Service
Rate and program details not yet verified — confirm with your utility.
Cost snapshot
Local cost data not yet verified. Get itemized quotes from 2-3 licensed contractors and compare line items.
Incentive snapshot
Section 25C Energy Efficient Home Improvement Credit (heat pumps)
Expired Dec 31, 2025. For 2023–2025: up to $2,000/yr (30% of project cost, capped) for qualifying heat pumps and heat pump water heaters. EXPIRED: This federal credit ended Dec 31, 2025 under the One Big Beautiful Bill Act (Public Law 119-21, signed July 4, 2025). Installations completed in 2026 or later do not qualify, regardless of when payment was made. For installations completed during 2023–2025, the credit applied to U.S. primary residences with heat pumps or heat pump water heaters that met or exceeded the highest CEE efficiency tier in effect at the start of the install year; starting 2025, the manufacturer's Qualified Manufacturer Identification Number (QMID) was required on the tax return. Homeowners with eligible 2025 installations may still claim the credit on their 2025 federal tax return. Verify with a qualified tax professional.