If you are thinking about installing a heat pump in Kelso, Longview, or anywhere else in Cowlitz County, the rebate situation is worth understanding before you get quotes. The available incentives are real, they are meaningful, and in some cases they can significantly reduce what you pay out of pocket.

Here is what is currently available and how it stacks together.

Your Utility: Cowlitz PUD

Cowlitz PUD is the electric utility serving all of Cowlitz County, including Kelso, Longview, Kalama, Castle Rock, and the surrounding areas. They offer rebates on qualifying energy-efficient equipment installed by licensed contractors.

Ductless mini-split heat pumps: $900 rebate per qualifying unit

Heat pump water heaters: $700 to $1,100 depending on the unit

Ducted whole-home heat pump systems:

  • Replacing an electric furnace with a variable speed heat pump: $1,500
  • Replacing an electric furnace with a standard heat pump: $1,200
  • Upgrading an existing heat pump to a variable speed system: $600

Smart thermostats: $165 for contractor-installed units, $140 for customer-installed

These rebates are paid after installation and require using a licensed contractor. I handle the rebate paperwork for my customers as part of the installation process.

Washington State HEAR Program

The State Home Electrification and Appliance Rebates (HEAR) program is funded through the federal Inflation Reduction Act and administered by the Washington State Department of Commerce. It offers rebates specifically for low- to moderate-income households, and the amounts are substantial.

Who qualifies: Households earning at or below 150 percent of the Area Median Income (AMI) for Cowlitz County. The exact income threshold depends on household size. If you are unsure whether you qualify, it is worth checking.

Heat pump rebate amounts:

  • Households earning 80 percent or less of AMI: up to $8,000
  • Households earning 80 to 150 percent of AMI: up to $4,000

Heat pump water heaters: Also covered under HEAR for qualifying households.

To find the HEAR program administrator serving Cowlitz County, email [email protected] with “State Home Electrification and Appliance Rebates (HEAR) Program” in the subject line, or visit the Washington Department of Commerce website.

Stacking the Incentives

Here is where it gets interesting. These programs can be combined.

A qualifying household with income below 80 percent of AMI could receive:

  • HEAR program rebate: up to $8,000
  • Cowlitz PUD rebate: $900 (mini-split) or up to $1,500 (ducted, depending on equipment)
  • Total: up to $9,500 or more depending on equipment

Even for households that do not qualify for HEAR, the Cowlitz PUD rebate plus competitive pricing on a Bosch system still represents real savings.

What About the Federal Tax Credit?

The federal Section 25C Energy Efficient Home Improvement tax credit, which previously offered up to $2,000 toward heat pump installations, expired on December 31, 2025. It is not available for installations completed in 2026 or later. If you installed a qualifying heat pump in 2025, you can still claim it on your 2025 tax return.

For Very Low-Income Households

If your household income is at or below 125 percent of the federal poverty level, additional assistance may be available through the Low-Income Home Energy Assistance Program (LIHEAP) and the Washington State Weatherization Program. These programs can cover heating and cooling equipment replacement, insulation, and air sealing at no cost to qualifying households. Contact the Washington Department of Commerce or your local Community Action Agency for details.

What This Looks Like in Practice

A typical ductless mini-split installation for a Longview homeowner who does not qualify for HEAR might look like:

  • Installed cost: $4,500 to $6,500 depending on the system
  • Cowlitz PUD rebate: -$900
  • Out-of-pocket: $3,600 to $5,600

A homeowner who does qualify for HEAR at the lower income tier:

  • Installed cost: $4,500 to $6,500
  • Cowlitz PUD rebate: -$900
  • HEAR rebate: up to -$4,000
  • Potential out-of-pocket: $0 to $1,600

Those numbers make a meaningful difference. And that does not include any financing options, which can spread the remaining cost across several years.

A Note on the Process

Rebate programs have requirements around equipment efficiency ratings, contractor licensing, and documentation. Not every heat pump qualifies, and not every installation is done in a way that meets the requirements.

I am familiar with what Cowlitz PUD requires for rebate approval, and I make sure the equipment I specify and the way I install it qualifies. If you get quotes from multiple contractors, ask each one how they handle the rebate paperwork and whether the equipment they are proposing qualifies for current programs.

If you have questions about what you might qualify for, give me a call. I can usually give you a rough picture of the incentive landscape for your situation before even setting up a formal estimate.