If you are shopping for a new heat pump or high-efficiency AC in Los Angeles, you have probably seen headlines promising thousands of dollars in rebates. Some of those programs are real and open right now. Others have ended, and a few come with fine print that can cost you the rebate entirely. This guide separates what is available in 2026 from what is not, using the programs’ own published rules as of October 12, 2026.
Cooling By Design is headquartered at 21201 Victory Blvd, Suite 125, Canoga Park, CA 91303. Licensed (#1148982), a certified Mitsubishi Electric Diamond Dealer, with 24-hour emergency service available. Call (877) 702-6654 if you want help figuring out which options fit your home in Canoga Park and nearby neighborhoods.
The Quick Version: What Is Available and What Is Not
- LADWP Consumer Rebate Program: open, per-ton rebates for qualifying heat pumps and central AC, limited funding.
- South Coast AQMD GO ZERO: reopened August 28, 2026 with limited single-family funding for heat pumps that replace gas or propane equipment.
- Federal 25C tax credit: ended. It does not apply to equipment installed after December 31, 2025.
- Other state and utility programs: availability changes frequently. Always confirm current status before you plan a budget around one.
Rebates are first-come, first-served and can run out, so timing and paperwork matter as much as the equipment you choose.
LADWP Consumer Rebate Program: The Numbers
If your electric bill comes from the Los Angeles Department of Water and Power, this is the program most likely to apply to you. Rebates are paid per ton of cooling capacity, and the amount depends on the equipment type and efficiency tier.
Heat pump HVAC rebates (per ton)
- Central, split and packaged heat pumps: $1,000 per ton for units above 15.2 SEER2 and 7.7 HSPF2, rising to $1,250 per ton above 19.6 SEER2 and 8.9 HSPF2.
- Ductless mini-split and multi-split heat pumps: $1,500 per ton for units above 15.2 SEER2 and 7.8 HSPF2, rising to $2,500 per ton above 20.5 SEER2 and 9.1 HSPF2.
Central air conditioning (non-heat-pump)
Standard AC-only systems receive a much smaller rebate: $100 per ton at 15.2 SEER2 and $120 per ton at 16.0 SEER2. That gap is one reason many homeowners are comparing heat pumps with a traditional AC and furnace setup. We break down that comparison in a separate guide.
What that looks like on a real system
- A 3-ton ducted heat pump: about $3,000 at the entry tier, up to $3,750 at the top tier
- A 3-ton ductless multi-split heat pump: about $4,500 at the entry tier, up to $7,500 at the top tier
These are simple per-ton multiplications, not guarantees. Your actual rebate depends on the exact model, its certified ratings, and available program funding.
Who qualifies
- You must be an LADWP residential customer with an active electric meter.
- Heat pumps must meet at least 15.2 SEER2 and 7.7 HSPF2.
- Packaged terminal heat pumps, new construction and accessory dwelling units (ADUs) are not eligible.
- Funding is limited and available first-come, first-served. Rebates are not guaranteed.
The paperwork that gets rebates approved
- A paid, itemized invoice
- A matching AHRI certificate for the installed equipment
- A final approved building and safety permit
- An application submitted only after the equipment is purchased and installed, and postmarked within 12 months of the purchase date
The permit requirement is easy to overlook. If your contractor skips the permit, you may lose the rebate. Ask about permitting before you sign anything, and read our checklist of ways to avoid overpaying on HVAC work for other questions to ask.
Are You Actually an LADWP Customer?
Most of the City of Los Angeles neighborhoods around Canoga Park, including Woodland Hills, West Hills, Winnetka, Reseda, Tarzana, Chatsworth, Northridge, Encino and Van Nuys, are typically served by LADWP. Some nearby communities, such as Calabasas and Hidden Hills, are usually served by Southern California Edison instead. Your electric bill shows your provider, and that decides which rebate programs you can use.
South Coast AQMD GO ZERO: Heat Pump Incentives
The South Coast Air Quality Management District runs GO ZERO, an incentive program for zero-emission heat pumps. According to the district’s announcement, applications resumed on August 28, 2026 after a pause earlier in the year, and a broader phase is planned for fall 2026.
- Single-family homes: standard incentives of roughly $1,000 to $2,000 per unit, and up to $3,000 for properties in overburdened communities.
- Replacement requirement: the new heat pump must replace existing gas or propane equipment.
- Funding: single-family funding is limited, and the district encourages applying early at aqmd.gov/gozero.
- Stacking: the district says GO ZERO rebates can be combined with other eligible incentives, so check whether you can pair it with your utility rebate.
Read the timing rules carefully before you sign a contract. Some incentive programs require approval before installation, while LADWP requires you to apply after purchase and installation.
What Ended: The Federal 25C Tax Credit
The federal Energy Efficient Home Improvement Credit (25C) is no longer available for equipment installed after December 31, 2025. Older articles that still promise a 30 percent credit on heat pumps are out of date. If a contractor tells you a federal credit will cover part of a 2026 installation, ask them to show you the current rule in writing, and talk to a tax professional about your specific situation.
Do the Rebates Change the Math on Replacing Your System?
Sometimes. A rebate that offsets several thousand dollars can shift a borderline decision toward replacement, especially for an older system that is already costing you in repairs. Our repair-or-replace decision guide walks through the numbers, and our guide to how long AC units last in Canoga Park helps you judge where your system stands. If efficiency is the main goal, read whether a high-efficiency upgrade makes sense for the long-term payback.
Ductless systems qualify for the highest per-ton LADWP rebates, which makes them especially worth a look for additions, older homes and rooms the main system struggles to reach. See why ductless mini splits are growing so quickly in our area. When you do replace, our 10-year installation protection offer and financing options can make a larger project easier to plan. Browse current exclusive offers too.
Our Service Area
Cooling By Design helps homeowners compare heat pump and high-efficiency system options from our Canoga Park headquarters across:
- Canoga Park
- Winnetka
- Woodland Hills
- West Hills
- Tarzana
- Reseda
- Chatsworth
- Northridge
- Hidden Hills
- Bell Canyon
- Calabasas
- Lake Balboa
- Porter Ranch
- Encino
- North Hills
- Granada Hills
- Topanga
- Van Nuys
- Panorama City
- Mission Hills
- Sherman Oaks
Frequently Asked Questions
Is there still a federal tax credit for heat pumps in 2026?
No. The 25C credit ended for equipment installed after December 31, 2025. Check with a tax professional about any other federal rules that may apply to you.
How much is the LADWP heat pump rebate?
Per ton, LADWP lists $1,000 to $1,250 for central, split and packaged heat pumps, and $1,500 to $2,500 for ductless mini-split and multi-split systems, depending on efficiency. Funding is limited, so confirm current availability.
Do I need to apply before or after installing the system?
For LADWP, you apply after both purchasing and installing the equipment, and the application must be postmarked within 12 months of the purchase date. Other programs may differ, so check each program’s rules first.
Can I combine LADWP and GO ZERO incentives?
AQMD states GO ZERO rebates can be combined with other eligible incentives. Confirm the details with both programs before relying on stacking.
Do ADUs and new construction qualify for the LADWP rebate?
No. LADWP’s Consumer Rebate Program excludes new construction and accessory dwelling units, along with packaged terminal heat pumps.
Why did my contractor mention a permit?
LADWP requires a final approved building and safety permit as part of the rebate paperwork. Make sure your contractor pulls and finalizes the permit.
Find Out Which Rebates Fit Your Home
Rebate rules change and funding can run out. Before you decide on a replacement, talk with a licensed contractor who can explain your options plainly. Review our maintenance plans to protect whatever system you choose. Call (877) 702-6654 or schedule online here. Email office@coolingbydesign.com. License #1148982. 21201 Victory Blvd, Suite 125, Canoga Park, CA 91303.