Santa Cruz County residents looking to upgrade their HVAC systems can benefit from a range of federal, state, and local rebates:
IMPORTANT UPDATE: Single-family home incentives are now accepting new applications. Multi-family programs and federal tax credits remain available with limited funding. (Updated 11/19/2025)
Federal Tax Credits: Limited Time
Under the Inflation Reduction Act, homeowners can receive a federal tax credit covering 30% of the installation cost for energy-efficient upgrades, including heat pumps. This tax credit is capped at $2,000 per year and applies to qualified energy-efficient installations. As of June 2025, these are still available, however Federal legislation may end these in as little as 6 months.
State Rebates
TECH Clean California – Single Family Fully Funded
This program started back up July 15, 2025. The TECH Clean California program offersincentive value ranges from $1,000 to $4,000 per Air Source Heat Pump HVAC system (maximum of 2 systems installed per household).
- Market Rate Incentives:
- $1,000 per unit for homes without previous air conditioning and/or leaving their existing furnace in as backup or for air handling.
- $1,500 per unit for homes with previous air conditioning and fully decommissioning their existing furnace
- Equity Incentives:
- $3,500 per unit for homes without previous electric air conditioning and/or leaving their existing furnace in as backup or for air handling.
- $4,000 per unit for homes with previous electric air conditioning and fully decommissioning their existing furnace.
To qualify for equity incentives, customers must meet either of the following income criteria:
- Household income at or below 80% area median income (AMI), or
- Household income at or below 250% federal poverty level (FPL)
- Client must submit income approval at the TECH Income Verification Portal before the reservation request is submitted (the project info that your contractor submits), and then send the verification via .pdf to your contractor.
Projects will be available for submittal on July 15th, and will not be approved until late August at the earliest, then must be completed within 120 days.
High-Efficiency Electric Home Rebate (HEEHRA) Program – Multi-Family Available
While rebates are no longer available for single-family homes, there are still reservations open and funding available for multi-family homes (5+ units), offering rebates up to $14,000 per unit.
Local Rebates
Central Coast Community Energy (3CE) Available
This program is once again accepting applications. Central Coast Community Energy (3CE) provides rebates up to $1,500 for Santa Cruz County residents who installed new heat pumps, with an additional $1,000 rebate available for low-income households. They have opened up applications again.
Financing
GoGreen Home Energy Financing is a state-backed initiative that provides low-cost loans specifically for energy-efficient home upgrades, including mini splits. You can borrow up to $50,000 with a GoGreen Home loan, and 30% of it can be for non-energy improvements like landscaping and remodeling. Through various lenders in the program, homeowners can access affordable financing options with potentially no upfront costs. GoGreen Home loans are typically unsecured, meaning they don’t require collateral like home equity, and payments are structured to be manageable, often based on expected energy savings. These loans do require a credit check but tend to have flexible terms, making them accessible for many homeowners.
Zephyr Climate Solutions is an enrolled GoGreen Home contractor.