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Homeowner resource / Reviewed October 30, 2026

A clearer picture
of Montana HVAC rebates.

Utility incentives, expired credits, and pending programs. Start with the details, then verify your eligibility before you buy.

Our view / Incentive planning

Look at the full price before counting a rebate.

A suitable system should make sense for your home and budget. Keep the full installed price visible, then confirm the incentive for your utility account, exact equipment, and project. A bigger advertised rebate doesn’t tell you which system fits your home.

Check who supplies your electricity and gas separately. A Great Falls address or a former Energy West gas account does not establish eligibility for a NorthWestern electric program.

NorthWestern’s current natural-gas application excludes former Energy West Montana and Cut Bank Gas accounts. Check the account restriction before counting a furnace or boiler incentive.

  1. Identify the utility account and the applicable application.
  2. Confirm equipment, approval timing, and required records before purchasing.
  3. Compare the installed cost and operating assumptions with the incentive shown separately.

Published utility incentives — confirm availability

NorthWestern Energy · Published Utility Offer — Confirm Account Eligibility

Existing Home Natural Gas Heating Incentives

$425 furnace / $700 boiler / $70 thermostat
Effective August 1, 2026 – June 30, 2027

Furnace: AFUE 90% or higher, replacing AFUE 80% or lower. Condensing boiler: AFUE 90% or higher, replacing AFUE 82% or lower. Qualifying programmable or Wi-Fi thermostat.

Former Energy West Montana and Cut Bank Gas accounts are excluded by the current application. Confirm your account before budgeting a gas rebate.

Eligibility & requirements
  • Eligible Montana residential natural-gas account; NorthWestern decides eligibility
  • New equipment in existing homes; leased equipment, new construction, and garages excluded
  • Purchase, finish, and submit within the program window; include a recent bill and itemized invoices
Last reviewed: October 30, 2026NorthWestern Energy Natural Gas Existing-Home Application ↗
NorthWestern Energy · Published Utility Offer — Confirm Availability

Existing Home Electric Heat Pump Incentive

$450 per unit
Effective August 1, 2026 – June 30, 2027

Central ducted or ductless heat pumps: ENERGY STAR rated or SEER2 at least 15.2 and HSPF2 at least 8.5, subject to utility approval

Eligibility & requirements
  • Must be an active NorthWestern Energy Montana electric residential customer
  • Applies to existing homes and new materials; new construction and garages are excluded
  • Confirm the exact equipment rating and account eligibility with NorthWestern; gas service alone does not qualify an electric account
  • Purchases and completed work must fall within the program window; complete and submit by June 30, 2027, with a recent electric bill and itemized receipts or invoices
Last reviewed: October 30, 2026NorthWestern Energy Existing Home Electric Rebate PDF ↗
NorthWestern Energy · Published Utility Offer — Confirm Availability

Participating-Contractor Heat Pump Water Heater Incentive

Up to $3,000 instant incentive
Limited-time program; confirm funding before committing

Qualifying high-efficiency hybrid heat pump water heaters installed by participating contractor

Eligibility & requirements
  • Customer must receive residential electric service from NorthWestern Energy in Montana
  • Must be installed by an approved participating contractor to receive instant customer discount
  • Replaces an existing electric resistance tank; natural-gas replacement does not qualify
  • Existing single-family or permanently founded manufactured homes at least 12 months old may qualify; rental properties, new construction, commercial properties, and self-installation are excluded
  • One incentive per residence; limited funding. Confirm participating-contractor and equipment requirements; this site does not establish our enrollment in that program
Last reviewed: October 30, 2026NorthWestern Energy Heat Pump Water Heater Program ↗
Sun River Electric Cooperative · Published Co-op Offer — Confirm Availability

Air-Source Heat Pump Incentive

$150 per installed ton (Up to $750 per system)
Published program; obtain approval before installation

Qualifying air-source heat pump installations meeting cooperative efficiency guidelines

Eligibility & requirements
  • The installation must be served by Sun River Electric; a nearby town name alone does not establish eligibility
  • Request the Air Source Heat Pump Rebate Agreement and return it for approval before installation
  • The public page lists minimums of 14 SEER and 8 HSPF using older rating terms. Ask the co-op to approve the exact model and its current ratings before purchase
  • One rebate per system; provide the installer's invoice. Payment follows installation and co-op compliance inspection; the published amount is $150 per installed ton, capped at $750 per system
Last reviewed: October 30, 2026Sun River Electric Co-op Air-Source Page ↗
Sun River Electric Cooperative · Published Co-op Offer — Confirm Availability

Ground-Source (Geothermal) Heat Pump Incentive

$200 per installed ton (Up to $1,000 per system)
Published program; obtain approval before installation

Qualifying ground-source heat pump systems approved by the cooperative

This is the co-op rebate only. Older geothermal tax-credit promotions do not establish eligibility for a new 2026 installation; see the expired-credit information below.

Eligibility & requirements
  • Must be an active cooperative member on Sun River Electric lines
  • Request the Geothermal Heat Pump Rebate Agreement and obtain co-op approval before installation
  • Site-built or manufactured homes on co-op electric service may qualify regardless of the previous heating fuel; this does not change NorthWestern's separate no-fuel-switching water-heater rule
  • Use a qualified installer and comply with electrical codes. Include the installer's invoice; one rebate per system, paid after installation and approval
  • Published amount: $200 per installed ton, capped at $1,000 per system; confirm current availability and approved equipment directly with the co-op before purchase. No state or federal tax credit is included in this listed incentive
Last reviewed: October 30, 2026Sun River Electric Official Ground-Source Rebate Form ↗

Expired & pending programs

Internal Revenue Service (IRS) · Expired Program

Federal Energy Efficient Home Improvement Credit (Section 25C)

Expired for property placed in service after Dec 31, 2025
Ended December 31, 2025

Previously applicable to qualifying biomass stoves, heat pumps, central AC, and furnaces

Eligibility & requirements
  • Notice for 2026 purchases: Under current federal statutory terms, the Section 25C tax credit is not available for qualifying property placed in service after December 31, 2025
  • Homeowners claiming credits for prior 2025 installations should refer to their 2025 tax filing documents and Form 5695
  • Always consult a licensed CPA or tax professional regarding personal tax situations
Last reviewed: October 30, 2026IRS Section 25C Information Notice ↗
Internal Revenue Service (IRS) · Expired for New Installations

Federal Residential Clean Energy Credit (Section 25D)

Not available for new 2026 geothermal installations
No credit for property placed in service after December 31, 2025

Previously included qualifying geothermal heat pumps

Eligibility & requirements
  • Do not apply an older advertised 30% federal credit to a new 2026 installation
  • A carryforward from an eligible earlier installation is a separate tax-return question for your tax professional
Last reviewed: October 30, 2026IRS Residential Clean Energy Credit ↗
Montana Department of Revenue · Repealed Credit

Montana Geothermal Systems Tax Credit

Repealed for new installations after tax year 2021
Tax year 2021 was the last year for a new claim

Historical geothermal systems credit; not a new-project rebate

Eligibility & requirements
  • Do not include an older advertised $1,500 state geothermal credit in a new 2026 project budget
  • Unused credits from eligible earlier tax years have separate carryforward rules; ask your tax professional
Last reviewed: October 30, 2026Montana Department of Revenue Repealed Tax Credits ↗
Montana Department of Environmental Quality (DEQ) · Pending Launch

Montana DEQ Home Energy Rebate Programs (HOMES & HEEHR)

Not yet available; final DOE approval required
Not launched — revised guidance and final DOE approval still required

Planned HOMES and HEEHR programs; final equipment and project rules depend on approved program guidance

Eligibility & requirements
  • Montana DEQ reports that state-administered HOMES and HEEHR rebate programs have not yet launched
  • DEQ reports revised DOE guidance began June 1, 2026; further guidance, application revision, and final implementation approval remain necessary
  • The state programs are not currently available; do not count announced incentives toward a purchase until DEQ publishes applicable launch and eligibility rules
  • Check the DEQ program page for availability before relying on a future incentive in your budget
Last reviewed: October 30, 2026Montana DEQ Energy Efficiency Portal ↗

Before counting an incentive

Frequently asked questions about Montana HVAC rebates.

Checked October 30, 2026. Published programs do not confirm remaining funding or approval for your project.

Can I still claim the federal $2,000 heat pump tax credit for a 2026 installation?

No. The federal Energy Efficient Home Improvement Credit under Section 25C is not available for property placed in service after December 31, 2025. Older pages advertising a heat pump credit through 2032 do not reflect that change. A qualifying 2025 installation is a separate tax-filing question; use the IRS guidance and your tax professional rather than counting a federal credit toward a new 2026 project.

Sources: IRS: Section 25C credit

Does my NorthWestern account qualify for the $450 heat pump rebate?

NorthWestern’s current Montana existing-home electric application lists $450 per qualifying ducted or ductless heat pump. It requires residential electric service; a NorthWestern gas account alone does not establish eligibility. The equipment must be ENERGY STAR rated or meet SEER2 of at least 15.2 and HSPF2 of at least 8.5, along with the application’s other conditions. Confirm your account and exact models before purchase; the utility makes the final eligibility decision and funding is limited.

Sources: NorthWestern: current electric existing-home application

Do I need approval before installing a heat pump to get a Sun River Electric rebate?

Yes. Sun River’s published air-source program says to request its rebate agreement and return it for approval before the contractor installs the system. It lists $150 per installed ton, capped at $750 per system, for buildings served by the cooperative. Payment follows installation and the co-op’s compliance inspection. Confirm the exact equipment, current efficiency requirements, and availability with Sun River before committing; its public page uses older SEER and HSPF terminology.

Sources: Sun River: air-source rebate and approval steps

Can I apply for Montana’s HOMES or HEEHR rebates now?

Not yet, according to Montana DEQ’s program page checked October 30, 2026. DEQ says the programs are not currently available and need final U.S. Department of Energy implementation approval before rollout. Announced funding or an estimated rebate is not an approval for your home. Do not assume a purchase made now will qualify later; wait for official application, timing, income, and equipment rules before relying on a future rebate.

Sources: Montana DEQ: current Home Energy Rebates status

Is NorthWestern’s up-to-$3,000 incentive for the heat pump that heats my house?

That offer is for a heat pump water heater, not the space-heating heat pump. NorthWestern’s separate program requires an existing electric resistance water-heater tank and a participating contractor; replacing a gas water heater does not qualify. Home type, age, account, and other restrictions apply, with one incentive per residence and limited funding. Confirm the current requirements and participating contractor before ordering; this page does not establish Great Falls Heating and Air’s enrollment in that program.

Sources: NorthWestern: heat pump water heater program

What paperwork and deadlines should I confirm before counting a rebate in my budget?

Use the application for your utility account and project, and check approval timing before buying. NorthWestern’s current existing-home electric form excludes work completed or materials purchased before August 1, 2026, and requires project completion and submission by June 30, 2027, with a recent bill and itemized receipts or invoices. Other programs have different steps, so keep model details, approvals, invoices, and a copy of the submitted application. Do not subtract an unapproved incentive from the amount you must be able to pay, and ask each administrator before assuming incentives can be combined.

Sources: NorthWestern: dates, records and terms; Sun River: pre-installation approval

Your next step

Let’s talk about your home.

Heating trouble, cooling questions, or a replacement on your mind?

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