Apply for a Heat Pump Rebate

The rebate amounts you qualify for depend on your household income.

According to the Department of Housing and Urban Development low-income household are defined as below 80% of the median income for the county or metro area. Moderate-income households are between 80% and 120% of the area median income (AMI). The current income limits for Albany are listed below.

Household income should be calculated by combining the "adjusted gross income" of all people residing in the home. Adjusted gross income can be found on line 11 of Form 1040. Household size is the total number of people in the home (including children and non-family members).

The rebate application includes a space to identify if your household is low or moderate income. If you select this option, you will be sent a form to prove your income and will be required to submit your most recent tax return. If you have any questions or need help with this process please reach out to mplouse@albanyca.org or 510-528-5754.

In order to apply, you must first receive a permit for your project, then submit your rebate application. Fill out the Heat Pump HVAC Rebate Application. The homeowner may fill out the application or the contractor may do it on their behalf.

We will verify your eligibility and then reserve your rebate funds for 3 months while your project is completed and the work is inspected by our building inspector. You may receive two 1 month extensions for a total of up to 5 months. Once you've passed inspection, submit your approved inspection record form and your W-9. Your rebate check will then be mailed to you!

Rather than generating heat like gas-powered furnaces do, electric heat pumps simply move it from one area to another. Heat pumps use fluids called refrigerants that are excellent at absorbing and releasing heat. They can absorb and concentrate heat from the atmosphere even when the temperature is very cold.

When your home is cold, the heat pump moves heat from outside indoors. When your home is too hot, a heat pump can cool it down by transferring the heat outdoors. This technique makes heat pumps much more efficient than gas furnaces, saving energy and money, and reducing greenhouse gas emissions.

All rebates over $600 are considered taxable income by the IRS. As such, we are required to collect W-9's from all participants so that we can send 1099 Forms with the rebate information at the end of the year. The impact this will have on your specific tax liability depends on your personal situation and we recommend speaking to a tax professional to understand whether and how much your rebate may be taxed.

Any personal information provided on a W9 will be used by the Finance Department for tax reporting purposes only. These files will be stored on a secure drive that can only be accessed by those with proper authorization.

In Albany, our electricity comes from carbon-free and renewable sources which are much cleaner than fossil fuels, such as natural gas. Most Albany homes emit about one ton of carbon every year just from their gas furnace. That's like driving from Albany, CA to Albany, New York. Heat pumps allow you to heat and cool your home with clean electricity and zero emissions. Learn more about electrification at the Albany Home Electrification Guide Website.

Heat pumps can also lower your utility bill, especially if your home if well-insulated or if you have solar panels. Rebates for insulation are available through BayREN.