Los Angeles water heater and HVAC rebates and permits (2026)

The federal credit ended after 2025

The IRS states that the Energy Efficient Home Improvement Credit (25C) is not allowed for property placed in service after December 31, 2025, and the Residential Clean Energy Credit (25D) is not allowed for expenditures made after December 31, 2025. Many websites still advertise these credits. For equipment installed in 2026, plan on local and utility rebates only, and ask a tax professional about anything else.

LADWP Consumer Rebate Program (City of Los Angeles electric customers)

LADWP raised its heat pump rebates for equipment purchased and installed on or after November 1, 2025. Its page lists:

• Heat pump water heaters: up to $2,500 per unit, depending on capacity and efficiency (UEF). Requirements include UEF of at least 3.3 and a capacity of at least 30 gallons. LADWP's table shows examples such as $1,500 for a 30 to 55 gallon unit with a 3.3 UEF and $1,750 at 3.5 UEF.
• Heat pump HVAC systems: up to $2,500 per ton, depending on the system's SEER2 and HSPF2 ratings.

Rules to know before you buy:

• You must be an LADWP residential customer with an active electric meter.
• Apply after the equipment is both purchased and installed. Applications must be postmarked within 12 months of the purchase date.
• Documents include a paid itemized invoice with the make and model, the manufacturer's spec sheet, and a final approved Building and Safety permit (for water heaters). An unpermitted install can cost you the rebate.
• Limit of one per residence, with exceptions for multi-unit properties applying together. New construction, additions and ADUs are not eligible.

SoCalGas Home Energy Efficiency Rebate Program (gas customers)

SoCalGas' 2026 program runs January 1 through December 31, 2026, or until funds run out, first come, first served. Examples from its page:

• High-efficiency storage water heaters (UEF of at least 0.64, 55 gallons or less): $300 to $575.
• High-efficiency tankless water heaters replacing a tank-type unit in a single-family detached home: $80 to $1,500.
• ENERGY STAR furnaces (AFUE of at least 92%): must be installed by a licensed contractor with proof of permit closure.

The product must be installed in an existing residential property in SoCalGas' service area. New construction does not qualify.

Do you need a permit to replace a water heater?

City of Los Angeles. LADBS says a plumbing permit is required to replace a gas water heater in a single-family home, unless the work is done by a contractor who holds a Certificate of Registration from LADBS as a Certified Licensed Contractor. That exception covers only like-for-like replacement of equal capacity, BTU rating and vent capacity.

Unincorporated Los Angeles County. LA County Public Works says a permit is required to install or replace a water heater.

Other cities. Rules differ. Ask your city's building department.

Why it matters: the permit is a safety inspection of gas, venting and water connections, and, as shown above, LADWP asks for a final approved permit to pay a rebate. If a contractor suggests skipping the permit, treat that as a red flag. See our license check guide.

Before you buy

1. Confirm which utilities serve your home.
2. Read the rebate page's current requirements and model list.
3. Get at least three written estimates and review them with our estimate checker.
4. Hire a licensed contractor from the plumber or HVAC directory and confirm the license on the state site.
5. Ask the contractor to pull the permit and keep your invoice, spec sheet and permit sign-off for your rebate application.

Sources

• IRS, One Big Beautiful Bill provisions (home energy credit expirations)
• LADWP Consumer Rebate Program
• SoCalGas Rebates & Incentives
• LADBS: permit to replace a gas water heater (FAQ)
• LA County Public Works: water heater permit (FAQ)