If you are thinking about replacing your heating system in 2026, the rebate picture in Washington State is worth understanding before you start getting quotes. Between utility programs and state funding, there is real money available that can change the math on a new heat pump installation.

Here is what is currently available for homeowners in Kelso, Longview, and the surrounding Cowlitz County area.

Your Electric Utility: Cowlitz PUD

All of Cowlitz County, including Kelso, Longview, Kalama, Castle Rock, and Castle Rock, is served by Cowlitz PUD. They offer rebates on qualifying energy-efficient equipment installed by licensed contractors.

Ductless mini-split heat pumps: $900 per qualifying unit

Ducted whole-home heat pump systems:

  • Replacing an electric furnace with a variable speed heat pump: $1,500
  • Replacing an electric furnace with a standard heat pump: $1,200
  • Upgrading an existing heat pump to a variable speed system: $600

Heat pump water heaters: $700 to $900 depending on tank size and efficiency tier (see the separate post on heat pump water heaters for details)

Smart thermostats: $165 for contractor-installed, $140 for customer-installed

Rebates are paid after installation and require using a licensed contractor. I handle the rebate documentation for my customers.

Washington State HEAR Program

The Home Electrification and Appliance Rebates (HEAR) program is funded through the federal Inflation Reduction Act and administered by the Washington State Department of Commerce. It targets low- to moderate-income households with rebates that are significantly larger than utility programs.

Who qualifies: Households with income at or below 150 percent of the Area Median Income for Cowlitz County. Exact thresholds depend on household size.

Rebate amounts for heat pumps:

  • At or below 80 percent of AMI: up to $8,000
  • Between 80 and 150 percent of AMI: up to $4,000

The program is active and accepting applications. To find the administrator serving Cowlitz County, email HomeRebates@commerce.wa.gov with “State Home Electrification and Appliance Rebates (HEAR) Program” in the subject line.

What About the Federal Tax Credit?

The federal Section 25C Energy Efficient Home Improvement tax credit for heat pumps expired on December 31, 2025. It is no longer available for new installations in 2026. If you had a heat pump installed in 2025, you can still claim it when you file your 2025 tax return.

Stacking Incentives

For households that qualify for the HEAR program, the incentives can be combined with Cowlitz PUD rebates:

Standard household (does not qualify for HEAR):

  • Cowlitz PUD ductless rebate: $900
  • Total rebate assistance: $900

HEAR-eligible household (80 to 150% AMI):

  • Cowlitz PUD rebate: $900
  • HEAR rebate: up to $4,000
  • Total: up to $4,900

HEAR-eligible household (at or below 80% AMI):

  • Cowlitz PUD rebate: $900
  • HEAR rebate: up to $8,000
  • Total: up to $8,900

At the higher HEAR tier, the rebates can cover nearly the entire cost of a ductless mini-split installation.

What This Looks Like on a Real Project

A ductless mini-split installation for a Longview home that does not qualify for HEAR:

  • Typical installed cost: $4,500 to $6,500
  • Cowlitz PUD rebate: -$900
  • Out of pocket: $3,600 to $5,600

A household that qualifies for HEAR at the $4,000 tier:

  • Typical installed cost: $4,500 to $6,500
  • Combined rebates: -$4,900
  • Out of pocket: as low as $0 to $1,600

For Very Low-Income Households

If your income is at or below 125 percent of the federal poverty level, additional programs may cover a heat pump installation at no cost. The Washington State Weatherization Program and LIHEAP (Low-Income Home Energy Assistance Program) can provide free equipment and installation for qualifying households. Contact your local Community Action Agency or the Washington Department of Commerce for details.

A Note on Getting Rebates Right

Rebate programs have specific requirements around equipment efficiency ratings, contractor licensing, and how documentation is submitted. Not every heat pump qualifies. Not every installation is done in a way that meets the requirements.

When you get quotes, ask each contractor whether the equipment they are proposing meets Cowlitz PUD’s requirements for rebate approval, and whether they handle the application process. A contractor who does not know the answer to that question is a contractor who may leave money on the table for you.

I am familiar with what Cowlitz PUD requires and make sure the equipment I specify qualifies. I handle the paperwork as part of the job.