Planning a heat pump or heat pump water heater in Summit, Madison, or nearby? Start here: federal residential credits 25C and 25D are no longer available for projects that miss the IRS cutoffs after December 31, 2025.
Utility and borough rebates still matter — and they route by who sells you electricity (and sometimes gas). Summit (JCP&L), Madison (borough electric), and PSE&G customers each follow different paths. Stashluk helps match equipment and paperwork before you replace a system.
Need a walkthrough for your address? Call 908-277-6200 or use the form on stashluk.com.
Quick answer: what ended vs what still helps
| Layer | Status for typical 2026 installs | Where to check |
|---|---|---|
| Federal 25C (energy efficient home improvement) | Not allowed for property placed in service after Dec 31, 2025 (IRS FS-2025-05) | IRS OBBB energy credit FAQs |
| Federal 25D (residential clean energy) | Not allowed for expenditures made after Dec 31, 2025; installation timing controls when the expenditure is treated as made | Same IRS FAQ |
| JCP&L (Summit electric) | HVAC and appliance rebates still listed on Energy Save NJ | JCP&L HVAC rebates |
| Madison Electric Utility | Borough heat-pump / HPWH incentives for eligible replacements | Madison rebate page |
| PSE&G | HVAC Instant Rebates + appliance / HPWH post-purchase options | PSE&G HVAC Instant Rebates |
Programs change. Rebates cannot exceed equipment cost. Confirm eligibility, model ratings, and application windows with the utility (and your tax professional for any leftover 2025 Form 5695 questions).
Federal credits: stop pitching 25C/25D as a current 2026 offer
Per IRS Fact Sheet FS-2025-05:
- 25C is not allowed for property placed in service after December 31, 2025.
- 25D is not allowed for expenditures made after December 31, 2025. Installation completion—not just payment—generally controls timing.
If a 2025 project still qualifies, ask your tax advisor about Form 5695. For new 2026 work, plan around utility and borough rebates, not a federal 25C heat-pump credit pitch.
Summit homeowners (JCP&L electric): Energy Save NJ HVAC & HPWH
Most Summit homes take electric from Jersey Central Power & Light via Energy Save NJ. Live JCP&L HVAC rebates (checked 2026-09-18):
Air-source heat pumps
- Tier 1: $500 — SEER2 ≥ 15.2, EER2 ≥ 11.7, HSPF2 ≥ 7.8
- Tier 2: $750 — SEER2 ≥ 17.1, EER2 ≥ 11.7, HSPF2 ≥ 7.8
- Cold climate (COP ≥ 1.75 at 5°F): $1,000 — SEER2 ≥ 15.2, EER2 ≥ 10, HSPF2 ≥ 8.1
Ductless mini-split heat pumps: $750 (SEER2 ≥ 17.1, EER2 ≥ 11.7, HSPF2 ≥ 7.8)
Geothermal (ENERGY STAR scenarios listed on page): $1,500 when replacing an ASHP/GSHP or electric forced-air furnace/central AC (per program rules on that page).
HVAC application window: JCP&L’s HVAC rebate form says equipment must be purchased and installed between January 1, 2025 and June 30, 2027, and the rebate application must be submitted within 120 days of purchase (JCP&L HVAC rebate application).
Heat pump water heaters: JCP&L’s appliance rebate form (purchases/installs 1/1/2025–6/30/2027) lists ENERGY STAR HPWH $750, plus a possible $300 LMI census-tract add-on when you follow their HVAC application path. Submit within 90 days of purchase (Energy Save NJ: 855-449-3090).
Equipment options: heat pump installation in Summit · heating services in Summit.
Madison homeowners (borough electric): apply before you replace gas heat
Madison is different from Summit: many homes are on Madison Electric Utility, not JCP&L. The borough publishes its own Electric Utility Rebate Incentives.
Verified amounts on the Madison page (2026-09-18):
- Heat Pump Tier 1 (SEER2 > 15.2*): $600
- Heat Pump Tier 2 (SEER2 > 17.1*): $1,000
- Ductless mini-split (EER2 > 12, HSPF > 9): $400 (multi- or single-zone)
- Water heater heat pump: $750
- Customer maximum: $2,000 across rebates
*Page footnote: EER2 > 11.7, HSPF > 7.8 for the heat-pump tiers.
Critical Madison rules
- Apply before the work when possible — Madison says it is best to submit before commencing so the project is approved first.
- For replacing older gas, oil, or propane heat/hot water with heat pumps — not new construction/additions (EV charger excepted). Residences only.
- Permits + Building Department inspections required; credit posts to the utility account (installs after Sep 1, 2024 per published rules).
- Questions: rebate@rosenet.org
Still on gas heat? File Madison paperwork before the swap. More: Madison HVAC · Madison HPWH install.
PSE&G customers (gas and/or electric in the service area)
PSE&G rebates depend on which PSE&G service you have. PSE&G’s $750 heat pump water heater rebate and its decarbonization incentives require a PSE&G residential electric account. If PSE&G supplies only your gas (and your electricity comes from JCP&L or Madison Electric), you don’t qualify for those, so use your electric utility’s heat pump and HPWH rebates above. PSE&G’s gas-equipment rebates (furnaces, boilers, gas and tankless water heaters) still apply to you. Ask us to confirm whether a gas-only account qualifies for PSE&G’s HVAC Instant heat pump measures. Details: My Home Energy — HVAC Instant Rebates.
Instant rebates via a participating contractor (verified on PSE&G page data):
- Air-source heat pump split — Tier 1 $300 / Tier 2 $450
- Cold-climate air-source heat pump $600
- Heat pump water heater (instant path) $450. PSE&G’s HVAC Instant FAQ says only that you must be “a current residential PSE&G customer”. It doesn’t say whether a gas-only account qualifies for this electric measure, so confirm before counting on it
- Income-qualified customers may get an additional $300 per eligible measure under PSE&G’s LMI HVAC Instant rules
Separate appliance path: ENERGY STAR heat pump water heaters can qualify for a $750 post-purchase rebate (HPWH product page), with UEF thresholds and a 120-day application window. This rebate requires an active PSE&G residential electric account (PSE&G: “must have an active PSE&G residential electric account or be a Butler Electric customer receiving PSE&G residential gas service”). PSE&G gas-only customers in JCP&L or Madison Electric territory don’t qualify. They should use the JCP&L ($750) or Madison ($750) HPWH rebate instead. Equipment already discounted under HVAC Instant Rebates is not eligible for that extra appliance rebate — pick one path with your contractor.
PSE&G also lists building-decarbonization paths (partial displacement, full conversion, ground source, panel upgrades) with “lesser of $ or % of cost” caps. To qualify, you must “be a current PSE&G residential electric customer” (or a Butler Electric customer with PSE&G gas). We confirm those on the live tables when we quote.
How Stashluk helps Summit & Madison homeowners
- Confirm utility (JCP&L vs Madison Electric vs PSE&G) and fuel replaced.
- Right-size heat pump, ductless, or HPWH — older local homes often need airflow and electrical planning.
- Match SEER2 / HSPF2 / UEF to the rebate tier.
- For Madison, help you submit before replacement when pre-approval is needed.
- Install to code and support the paperwork trail.
We do not invent rebate dollars — we use live utility pages and your account type. Financing may be available for qualifying projects (subject to approval).
Ready to map rebates to your home?
Call 908-277-6200 · Request service on stashluk.com
Stashluk Plumbing, Heating, Air Conditioning & Generators · 31 Chatham Road, Summit, NJ 07901 · info@stashluk.com
Frequently asked questions
Are federal heat pump tax credits (25C) still available in 2026?
For property placed in service after December 31, 2025, the IRS says the section 25C energy efficient home improvement credit is not allowed (FS-2025-05). Section 25D likewise does not apply to expenditures treated as made after that date. Ask a tax professional about any completed 2025 projects on Form 5695. For new 2026 work, focus on utility and borough rebates.
What heat pump rebate can Summit (JCP&L) homeowners get?
On the live Energy Save NJ JCP&L HVAC page: air-source heat pumps at $500 (Tier 1), $750 (Tier 2), or $1,000 (qualified cold-climate), plus $750 for qualifying ductless mini-split heat pumps. Efficiency minimums (SEER2/EER2/HSPF2) apply. Equipment must be purchased and installed by June 30, 2027, and the application is due within 120 days of purchase. Confirm model ratings and application steps before purchase.
What about Madison’s $600–$1,000 heat pump rebates?
Madison Electric Utility lists $600 (Tier 1) and $1,000 (Tier 2) heat pump rebates, $400 for qualifying ductless mini-splits, and $750 for a heat pump water heater, with a $2,000 customer cap. The program is for replacing older gas, oil, or propane systems with heat pumps — not new construction. Madison recommends applying before work begins.
Is there a heat pump water heater rebate in New Jersey for our area?
Yes, but it depends on your electric utility. JCP&L appliance forms list $750 for ENERGY STAR HPWHs (with possible LMI add-on rules), and Madison lists $750. PSE&G offers $750 post-purchase or $450 via HVAC Instant (the two paths don’t stack). PSE&G’s $750 rebate requires an active PSE&G residential electric account, so PSE&G gas-only customers use their JCP&L or Madison rebate instead. Always verify the live utility page for your account.
Will Stashluk handle rebate paperwork?
We help identify the right program for your utility, select qualifying equipment, and guide applications (including Madison pre-approval timing). Final approval is always the utility’s or borough’s decision. Call 908-277-6200 or use the form on stashluk.com.
