In 2026, California's Title 24 energy code makes heat pumps the prescriptive default for new construction and major remodels, and regional air-quality rules increasingly favor all-electric equipment. But nothing forces you to rip out a working gas furnace — the rules govern what gets installed next. The bigger 2026 change is on the incentive side, where several programs expired or paused.
DefinitionWhat actually changed under Title 24?
Title 24 is California's building energy code — the rulebook for how homes are built and what equipment they use. Its current cycle makes a heat pump the baseline assumption for space (and increasingly water) heating in new construction: build to the standard recipe and that recipe says "heat pump." Installing gas instead means extra compliance steps. The Bay Area Air Quality Management District has also adopted zero-NOx rules for new water and space heating equipment — a clear signal of where policy is headed.
When it applies to youDo I have to replace my gas furnace?
No. If your furnace works, you can keep it, repair it, and run it. The rules are about new installs and major remodels — not about removing what you have. When you do replace, permits, equipment availability, and air-quality rules increasingly point to a heat pump. If you're weighing the switch, our gas furnace vs. heat pump comparison lays out the real trade-offs.
Watch for "2026 mandate" pressure selling. If a salesperson says the law forces you to sign today, slow down — it doesn't. A free second opinion from the owner costs you nothing.
The 2026 incentive reality — read this before you count on a rebate
A lot of older online advice is now out of date. Here's the honest 2026 status:
- Federal 25C tax credit: expired December 31, 2025. Don't plan around it.
- TECH Clean California (single-family): waitlisted statewide in 2026, no confirmed reopen date.
- Federal HEEHRA rebates: waitlisted — not a reliable 2026 funding source.
- Local CCA & utility programs (e.g., SVCE, Westlight Energy, San Jose Clean Energy, Palo Alto Utilities, Silicon Valley Power, BayREN, SGIP for batteries/HPWHs): may still apply depending on your address — status changes often.
Because this moves constantly, we keep the live picture — and which programs your address may qualify for — on the Rebate Hub, and our Rebate Concierge files the paperwork and watches the waitlists for you.
ProofHow we guide Peninsula homeowners through this
Plum is an approved contractor across the major Bay Area electrification programs, and Natalie on our team has walked many customers through rebate paperwork (including BayREN). We won't promise a rebate that isn't funded — we'll tell you exactly what's available for your address today, and use Wisetack financing as the always-available lever to keep the project affordable now.
ActionYour next step
Planning a replacement under the 2026 rules? Get an honest, no-pressure plan from the owner — and check current incentives first on the Rebate Hub.
Educational summary of California Title 24 and BAAQMD direction; not legal advice — confirm specifics with your local building department. Incentive status reflects the 2026 expiration of the federal 25C credit and the statewide waitlisting of TECH Clean California (single-family) and federal HEEHRA; verify current program eligibility on our Rebate Hub before purchasing. Plum HVAC · CSLB #1087978 · Mitsubishi Electric Elite Diamond Contractor.
Educational guidance for Mountain View & Peninsula homeowners — not a formal quote. Every recommendation should be confirmed against your home's actual conditions during an in-home visit. Incentive amounts and program status change; verify current eligibility before you buy.
Quick answers
Are heat pumps required in California in 2026?
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Not retroactively. California's Title 24 energy code makes heat pumps the prescriptive default for new construction and major remodels, and regional air-quality rules are steering new equipment toward electric — but nobody has to remove a working gas furnace. The rules shape what gets installed next, not what you already own.
Is the federal heat pump tax credit available in 2026?
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No. The federal 25C energy-efficient home improvement tax credit expired December 31, 2025. Plan your 2026 project around financing and any still-active local utility or Clean Energy (CCA) programs, not the 25C credit. We track the current status on our Rebate Hub.
What about TECH Clean California and HEEHRA rebates in 2026?
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As of 2026, TECH Clean California's single-family incentives and the federal HEEHRA rebate program are waitlisted statewide with no confirmed reopen date. We don't advertise them as available. Our Rebate Concierge monitors the waitlists and files the moment funds reopen — meanwhile, some local CCA and utility programs may still apply.
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