Last updated October 2026. Incentives change fast, so confirm with each program before you sign.
Replacing your HVAC system is one of those homeownership milestones that sneaks up on you. One
day it's humming along, and the next it's leaking refrigerant, making strange noises, and forcing you to Google things like "SEER2" or "why is my AC screaming."
And if your system uses R-22 or R-410A, the refrigerant question comes up fast. R-22 hasn’t been made since 2020, and new systems now use lower-impact refrigerants such as R-454B. An R-410A system can still be repaired and recharged, but if it’s older and failing, replacing it may make more sense than another repair.
By the end of this article, you’ll know all about the rebates, tax incentives, and financing options that can help make upgrading to an R-454B system more affordable. Whether you're dealing with an emergency replacement or planning ahead, this guide will help you make a smarter, more financially manageable decision.
Why R-454B Systems Are the New Standard
You may already know that R-454B is replacing R22 and 410A because it’s better for the environment, has a lower global warming potential, and meets new federal regulations.
But let’s be real: those reasons don’t mean much if you’re staring down a five-figure HVAC estimate.
There are multiple programs available to help you upgrade to a system that uses R-454B refrigerant — and stacking those benefits can significantly reduce your out-of-pocket costs.
Federal Tax Credits: Ended for Systems Installed in 2026
The federal tax credit for HVAC upgrades is gone for new installs. The IRS says the Energy Efficient Home Improvement Credit (25C), which paid up to $2,000 for a heat pump, is not allowed for property placed in service after December 31, 2025. If your system was installed in 2025, you claim the credit on your 2025 return using Form 5695, and a tax professional can tell you what applies to you. For a system installed now, the money that’s left is in the Oregon, Energy Trust and utility programs below. Our 2026 guide to HVAC tax credits and rebates in Oregon and Washington tracks what is still open.
Oregon Rebates for Energy-Efficient HVAC Systems
Oregon offers a variety of programs to help homeowners, renters, and landlords upgrade to high-efficiency heat pump systems. These rebates and incentives are designed to make the transition to cleaner, more efficient HVAC systems easier and more affordable.
1. Energy Trust of Oregon Standard Incentives
If you're served by Portland General Electric, Pacific Power, NW Natural, Cascade Natural Gas, or
Avista, you may qualify for Energy Trust of Oregon's core incentives:
- $1,000 to $3,000 for a ducted heat pump
- $800 to $1,800 for a ductless mini-split
- $1,000 to $2,000 for an extended capacity (cold-climate) heat pump
The higher amounts are mostly for homes replacing electric heat, rental properties and income-qualified households. If Hood River Electric Cooperative or Northern Wasco County PUD sends your electric bill, ask your utility about its own heat pump rebates instead.
How to qualify:
- Must be an Oregon resident with eligible utility provider
- Work with a participating Energy Trust trade ally contractor
How to apply:
- Your contractor will apply the incentive directly to your invoice, reducing your upfront cost. You don’t need to fill out rebate forms yourself.
2. Regional Heat Pump Promotion for Eastern Oregon
For residents in Gilliam, Morrow, Umatilla, and Wallowa counties, additional regional incentives are
available:
- Up to $4,000 off ducted systems
- Up to $3,500 off ductless systems
Like standard Energy Trust incentives, these are applied directly through contractors or community partners.
To qualify:
- Live in one of the four eligible counties
- Install with a participating contractor
Steps to apply:
- Contact a participating trade ally or community partner
- They handle all the paperwork and deduct the incentive from your final bill
3. Oregon Heat Pump Purchase Program
This state-run program pays $2,000 per home for an eligible heat pump (HSPF2 of 8.1 or more and SEER2 of 16 or more). As of October 1, 2026, the money for existing owner-occupied homes is used up; funds remain for rental properties and new construction.
Eligibility:
- Must live in Oregon
- Install an approved heat pump
- Available to homeowners, rental property owners, and developers
How to apply:
- An ODOE-approved contractor submits the application, and the incentive comes off your price
- Limited to one per home, and it can’t be combined with federally funded HOMES or HEAR rebates
4. Oregon Rental Home Heat Pump Program
The Oregon Department of Energy says this program’s general funding has been fully reserved and it is no longer accepting applications. Landlords can still use HP3’s rental funds and Energy Trust’s rental incentives, covered above. 
- Up to $5,000 for standard rental property heat pump installs
- Up to $7,000 if the tenant qualifies as low- or moderate-income or the property is a manufactured home or RV
To qualify:
- Be a property owner or landlord in Oregon
- Install a qualifying heat pump system
- Additional documentation required for income-based bonus
How to apply:
- Apply through the state energy program portal
- Submit required income and property documentation
Whether you're a homeowner looking for a standard rebate, a landlord upgrading multiple units, or living in one of Oregon's more rural counties, there are programs in place to help you make the switch to high-efficiency, R-454B-compatible systems. Some programs can be combined, but not all: HP3 can’t be stacked with HOMES or HEAR rebates, and Energy Trust’s extended capacity incentive can’t be combined with other heat pump incentives. Many take the incentive straight off your invoice, and your contractor can tell you which ones fit your home.
5. Community Heat Pump Deployment Program
If you own your home in Hood River, Sherman or Wasco county, this is the Oregon program to call about. ODOE lists up to $5,000 for a heat pump that meets minimum efficiency requirements and up to $7,000 for one that meets higher requirements, plus up to $4,000 for related upgrades such as a new electrical panel or weatherization. The total can’t exceed the cost of the work.
On October 9, 2026, the North Central region (run by NeighborImpact, 541-323-0395) was accepting applications; the Portland Metro region, which includes Gresham and Troutdale, was fully reserved. Ask NeighborImpact about the income rules before you plan around it.
Washington Rebates for Energy-Efficient HVAC Systems
Washington State offers several programs to help homeowners and renters upgrade to more efficient, eco-friendly HVAC systems — many of which are compatible with R-454B refrigerant. These programs are funded at both the state and federal level and are designed to make home electrification and energy savings accessible to more Washingtonians.
1. Washington Home Electrification and Appliance Rebates (HEAR) Program
Funded by the Climate Commitment Act, the HEAR program offers rebates to low- and moderate-
income households for upgrading to high-efficiency electric equipment, including heat pumps.
- Rebate amounts vary based on household income and equipment type
- Eligibility is determined by income qualifications and utility service area
- Funding is limited and awarded on a first-come, first-served basis
To qualify:
- Must be a Washington resident
- Meet income requirements (based on area median income)
- Install approved high-efficiency electric equipment such as heat pumps
How to apply:
- Check eligibility through the Washington State Department of Commerce
- Work with approved contractors who help submit documentation
- Applications typically open in cycles, so watch for announcements and deadlines
2. Seattle's Clean Heat Program
The City of Seattle offers incentives and guidance for homeowners transitioning to clean heating
systems.
- Local rebates or pilot programs may apply depending on the property type and zip code
- Focuses on replacing oil, propane, or natural gas systems with electric heat pumps
To qualify:
- Be a Seattle homeowner
- Replace a fossil-fuel based heating system with a qualified electric system
How to apply:
- Visit the Seattle Clean Heat website and sign up for updates or pilot program details
- Choose a certified contractor from the city’s recommended list
3. Puget Sound Energy (PSE) Rebates
PSE offers rebates for energy-efficient electric heating equipment, including heat pumps:
- Up to $2,400 for heat pump conversions
- Additional rebates for smart thermostats and insulation upgrades
To qualify:
- Be a PSE electricity customer
- Install qualifying equipment through a PSE-recommended contractor
How to apply:
- Submit application via PSE’s online portal
- Contractor provides invoice and equipment documentation
4. Clark Public Utilities Heat Pump Rebates
Clark County residents may qualify for:
- Up to $1,500 for ducted heat pump installation
- Up to $2,000 for ductless systems
To qualify:
- Be a Clark Public Utilities customer
- Use an approved installer
How to apply:
Work with a utility-approved contractor who will help submit rebate forms
5. Snohomish County PUD Energy Efficiency Rebates
Offers rebates for both ducted and ductless heat pumps:
- Up to $2,000 for ductless heat pump installation
- Smaller rebates for insulation, windows, and other energy-efficiency improvements
To qualify:
- Be a SnoPUD customer
- Install through a participating contractor
How to apply:
- Visit SnoPUD’s website to download rebate forms
- Submit documentation after installation is complete
Manufacturer Promotions for Energy-Efficient HVAC Systems
HVAC manufacturers like Trane, American Standard, and Mitsubishi Electric frequently offer limited-
time rebates and seasonal promotions when you purchase qualifying systems. These promotions can include:
- Instant cash-back offers on select models
- Discounted or free smart thermostats with qualifying installations
- Extended warranties at no additional cost
These deals vary by region and time of year, so it’s always smart to:
- Ask your contractor what manufacturer incentives are available
- Check the manufacturer’s rebate or promotions page directly
- Look for special dealer-only offers that may not be widely advertised
Tip: Spring and fall are typically the best times to shop, as manufacturers often roll out promotions to keep sales steady between peak heating and cooling seasons.
Flexible Financing Through A&E Plumbing, Heating and Air
In addition to rebates and manufacturer incentives, A&E Plumbing, Heating and Air offers special in-house financing options to make upgrading more affordable—especially if your system fails unexpectedly.
Whether you're installing a ductless system, a high-efficiency heat pump, or upgrading to a 454B-compatible model, financing can help ease the upfront cost. Our team can walk you through the options and help you apply during your visit. Call (541) 387-3311 in the Gorge or (503) 618-9646 in Gresham, or schedule service online. schedule service online
Making the Numbers Work for You for Your HVAC Upgrade
When you started reading this, you might have been dreading the idea of replacing your HVAC
system. Maybe your old system still technically works, or maybe a recent repair estimate made your jaw drop.
If you’re still unsure what your current system uses or whether you qualify for these programs, talk to a certified HVAC contractor. They can walk you through options, help with paperwork, and explain which models check all the right boxes.
You don’t have to rush or panic. But now you’re equipped to plan ahead and make a smart, cost-effective upgrade.
Because when it comes to home comfort, being informed beats being surprised—every single time.
