Illinois Heat Pump Rebates

What's available in Illinois

Illinois has no single statewide heat pump rebate funded by state appropriation; instead, residents stack utility rebates with the federal HEAR/HEEHRA program administered by the Illinois EPA Office of Energy. ComEd and Ameren Illinois run the largest investor-owned utility programs offering instant point-of-sale discounts for ducted, ductless, and ground-source heat pumps plus heat pump water heaters. The Illinois EPA HEAR program (IRA Section 50122) is income-qualified, offering up to $8,000 for households under 80% AMI; statewide launch was projected for late 2025 to early 2026 with initial allocation prioritized for low-income households. Smaller cooperative and municipal utilities (Eastern Illini, Naperville) provide additional rebates.

HEEHRA in Illinois

HEEHRA rebate: Point-of-sale rebate up to $8,000 for households at or below 80% of area median income. Funded by the IRA, administered by each state. Illinois is finalizing program rules.

How heat pump rebates work in Illinois

Illinois has no state-funded heat pump rebate program; all 2026 rebates come either from utility Act-style efficiency programs or from the federal IRA Home Energy Rebate Programs administered by the Illinois EPA Office of Energy. The two large investor-owned utilities — ComEd in northern Illinois (the Chicago metro plus much of central/northwestern Illinois) and Ameren Illinois in central and southern Illinois — operate the largest residential heat pump programs. Both pay rebates as upfront point-of-sale instant discounts when the install is performed by a participating contractor, which means you never see the full sticker price.

ComEd's residential heat pump discount runs up to $1,400 for qualifying ducted air-source heat pumps and centrally ducted mini-splits, tiered by tonnage. Ameren Illinois pays around $900 for ducted air-source heat pumps and $1,150 for heat pump water heaters (both as instant discounts). Smaller cooperative and municipal utilities — Eastern Illini Electric Cooperative, Naperville's municipal utility, Springfield's CWLP, and others — run their own programs with smaller amounts, generally $200-$500. Whether you can stack a co-op rebate depends on whether your address is in the co-op's territory or an IOU's; the two don't overlap.

The Illinois EPA HEAR program (the state-administered IRA Section 50122 funding) is income-qualified, offering up to $8,000 for households at or below 80% AMI for a heat pump install, with a smaller tier for 80-150% AMI. Statewide launch was projected for late 2025 to early 2026 with initial allocation prioritized for low-income households. As of 2026 the program had begun accepting applications in phases — confirm directly with the Illinois EPA's HEAR portal that the heat pump space conditioning phase is currently open in your county before factoring HEAR into your budget. The federal §25C heat pump credit was repealed effective December 31, 2025 and does not apply to 2026 installs.

Illinois rebate programs

6 utility-specific programs not shown here. Enter your ZIP in the calculator to filter to just your utility.

A worked example: replacing a Chicago electric resistance system

Robert owns a 1,650 sq ft single-family home in Oak Park, served by ComEd. His 1985-era electric baseboard heat is brutal in winter — December and January bills regularly hit $480. His central AC is a 1990s system at end of life. He gets quotes for a 3.5-ton ducted air-source heat pump (16.5 SEER2 / 8.7 HSPF2) replacing both the baseboard heat and the AC, including new ductwork in unfinished spaces. Installed quotes range $19,200 to $23,500; he picks a ComEd-participating contractor at $20,800.

ComEd's residential heat pump discount for a 3.5-ton system at 16.5 SEER2 / 8.7 HSPF2 lands around $1,400 (the program cap). Because Robert is replacing electric resistance heat (not gas), some ComEd promotional periods add a 'fuel switching' bonus — verify with the contractor whether that's currently active. The discount appears as a line item on his contractor's invoice, so his net price drops to roughly $19,400.

Robert's household income (around $95,000 for a family of three) puts him at roughly 110% of Cook County AMI — above the 80% threshold for Illinois HEAR's most generous tier. The 80-150% AMI tier offers up to $4,000 for a heat pump install, but availability depends on whether HEAR is currently accepting applications in his county. If the program is open and he qualifies for the 80-150% tier, his stack grows from $1,400 to $5,400. If HEAR isn't yet accepting his tier, his stack stays at $1,400.

Robert's daughter in Champaign is on Ameren Illinois, not ComEd. The same install would qualify under Ameren's $900 ducted ASHP rebate — about $500 less than ComEd's program. Ameren also runs a separate $1,150 heat pump water heater discount; if she added an HPWH to the project, her stack would be $2,050 vs Robert's $1,400 (assuming Robert doesn't add an HPWH). The Illinois lesson: utility identity matters, and bundling water heater work with the HVAC project unlocks additional rebate dollars in Ameren territory.

Choosing a contractor in Illinois

Illinois does not have statewide HVAC contractor licensing. Local jurisdictions (Cook County, City of Chicago, Naperville, and others) license HVAC contractors at the municipal level, and refrigerant work requires EPA Section 608 certification. For Chicago installs, your contractor must hold a Chicago HVAC License (issued by the Department of Buildings); for suburban Cook County, county-level licensing applies. Verify licensing at the relevant city or county building department before signing.

ComEd's residential heat pump discount and Ameren Illinois's instant discount both flow through Program Ally (Ameren) or participating contractor (ComEd) networks. A non-enrolled contractor cannot file the rebate after the fact — these are point-of-sale programs, not reimbursement programs. Ask before signing: 'Are you currently enrolled with [ComEd / Ameren] as a participating heat pump contractor, and will the discount appear on my invoice?'

Illinois winters are cold — Chicago design temperature is roughly -5°F, Rockford and Peoria similar. A non-cold-climate heat pump can struggle below 10°F and trigger expensive electric resistance backup. For installs in northern and central Illinois, specify a NEEP Cold-Climate Air-Source Heat Pump Specification (CCASHP) listed system. Some ComEd rebate tiers step up explicitly for cold-climate certified equipment; ask your contractor whether the rebate amount changes between standard and cold-climate models.

Common pitfalls for Illinois homeowners

• Confusing ComEd and Ameren territories. ComEd serves the Chicago metro and parts of northern Illinois; Ameren Illinois serves central and southern Illinois. The two utilities don't overlap, and their rebate programs are separate. A homeowner who moves between territories needs to recheck — your previous utility's program doesn't follow you.
• Assuming Illinois HEAR is open everywhere. Illinois HEAR launched in phases by county and by measure type. The heat pump space conditioning phase may be open in some counties and not others as of mid-2026. The Illinois EPA Office of Energy's HEAR portal is the authoritative status source — don't rely on contractor quotes that promise HEAR money before you've confirmed your application would currently be processed.
• Skipping the participating contractor requirement. Both ComEd and Ameren rebates are point-of-sale through participating contractors. A homeowner who hires a non-participating contractor cannot retroactively claim the rebate — there is no 'post-install reimbursement' pathway for these programs. The cheapest quote sometimes comes from a non-participating contractor; the apparent savings disappear when you account for the lost rebate.
• Counting on §25C federal credit. The federal residential energy property credit (§25C) covered up to $2,000 for heat pumps in 2025 but was repealed effective December 31, 2025 by the OBBBA. Illinois installs completed in 2026 cannot claim it. The §25D 30% federal credit remains for geothermal only — not air-source.
• Underestimating Chicago electric panel constraints. Many older Chicago and Cook County homes have 100A or 60A electrical service. A whole-home heat pump replacing electric baseboard or oil heat can push the home over panel capacity, requiring a $2,000-$5,000 panel upgrade as a prerequisite. Illinois HEAR (when available) covers panel upgrades as a separate measure; ComEd does not. Ask your contractor for a panel-capacity assessment as part of the quote.

Estimate your net cost

How to claim each rebate

1. Get pre-approved (where required). Some utility programs require approval before install. Check program details before signing a contract.
2. Use a participating contractor. Many programs require a licensed installer from an approved contractor list — especially HEEHRA, which routes through CEC-approved contractors who process the rebate at point of sale.
3. Save documentation. AHRI certificate, model numbers, and itemized invoice are required for most utility rebates.
4. Submit utility rebate within 60–90 days of install. Some programs are first-come first-served and close mid-year — funding can run out before the calendar year does.

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