Wood Stove Rebates in Southern Oregon, October 2026: What Ended and What Is Open
The federal credit for biomass stoves ended after 2025, Oregon heat pump funds for Jackson and Josephine homeowners are fully reserved, and the home energy rebates have not opened. Status as read in October 2026.
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Short Answer
As of October 7, 2026 we could not confirm any money available to a Jackson or Josephine County homeowner for replacing a wood stove. The federal tax credit that covered qualifying biomass stoves ended for equipment placed in service after December 31, 2025. The Oregon heat pump programs that could fund a replacement are fully reserved for Jackson and Josephine homeowners. The federal-funded Oregon home energy rebates have not opened. Oregon DEQ's list of wood stove exchange programs names Multnomah County, Washington County and Oakridge, and nothing in Southern Oregon. This page is a dated snapshot, and these programs change.
Status by Program
Each row is what the program's own page said when we read it on October 7, 2026.
| Program | What it offered | Status when read |
|---|---|---|
| Federal Energy Efficient Home Improvement Credit (25C) | Up to $2,000 a year for qualified heat pumps, water heaters, biomass stoves or biomass boilers. A biomass stove had to have a thermal efficiency of at least 75 percent. | Ended. The IRS says the credit "will not be allowed for any property placed in service after December 31, 2025." A 2025 installation can still be claimed on a 2025 return. |
| Oregon Community Heat Pump Deployment Program | Up to $5,000 toward a qualifying heat pump, or up to $7,000 for higher efficiency, with up to $4,000 more for upgrades such as an electrical panel | Closed for our region. The Department of Energy lists the Southern Oregon (Jackson, Josephine) administrator as "Funding Fully Reserved, Not Accepting Applications." |
| Oregon Heat Pump Purchase Program | $2,000 toward a heat pump for an owner-occupied home, rental or new construction | Funding for existing owner-occupied homes is fully reserved. The program's chart showed money remaining only for rentals and new construction. |
| Oregon Home Energy Rebates (HOMES and HEAR) | HEAR covers 50 to 100 percent of project costs, up to $14,000, with a heat pump for space heating and cooling rebated at $8,000. HOMES covers 50 to 100 percent up to $10,000 (for most households the cap is $2,000 to $4,000). | Not open. The state says "No rebates are currently available" until the US Department of Energy approves a launch, and says contractor enrollment opens on October 12, 2026, with no date yet for homeowner applications. |
| Ashland Electric residential incentives | $1,500 for a variable-speed forced-air heat pump or $900 for a ductless unit, with a home energy review first and a larger amount for income-qualified customers | Listed on the city's page for Ashland Electric customers. The conversions it names are from electric forced air, zonal electric heat or natural gas. Wood is not among them. |
| Energy Trust of Oregon heating incentives | Heat pump incentives of $800 to $3,000 on the standard offers, and up to $4,000 on a manufactured-home promotion, depending on the equipment and household | Open, but the pages we read tie most of them to replacing electric heat and never mention wood stoves. Ask Energy Trust before assuming a wood stove replacement qualifies. |
What the Home Energy Rebates Would Cover
When the HEAR rebates open, the state says they can pay for installing an electric heat pump for space heating "even if the heat pump will replace a non-electric system," but cannot be applied "toward the cost of removing existing non-electric equipment for space heating and cooling." The pages do not name wood stoves either way, so whether a wood stove replacement qualifies is a question for the program when it opens. Households under 80 percent of area median income are eligible for 100 percent of the cost, and those from 80 to under 150 percent for 50 percent.
Wood Stove Exchange Programs
Oregon DEQ's page on financial assistance for replacing wood stoves says some areas have local programs to fund changeouts to cleaner heating equipment. It lists Multnomah County's exchange, Washington County's exchange and the City of Oakridge, which was EPA-funded through 2024. Multnomah County's own page says its program "has run out of funding." There is no Jackson or Josephine County entry. We could not open the Jackson County, Josephine County or Medford websites from our machine, so we have not confirmed whether those governments run anything DEQ's page does not list. Ask Jackson County Environmental Health or Josephine County Public Health.
State law does set up a Residential Solid Fuel Heating Air Quality Improvement Fund for replacing or removing uncertified devices, but we found no evidence of money in it for Southern Oregon.
Smaller Local Programs
The Illinois Valley Community Development Organization administered the Department of Energy's heat pump program for Jackson and Josephine Counties and says the program wrapped up at the end of 2025 after supporting 104 heat pump installations in Josephine County and 63 in Jackson County. It also runs a Healthy Homes grant for low-income households in the Illinois Valley, on a rolling basis through fall 2027. Wood stoves are not named among the eligible work.
If You Are Replacing a Stove Anyway
- A replacement stove or insert has to carry a DEQ or EPA certification label, and EPA lists certified models. Its page notes that the Burn Wise program ended in 2025 and the page is no longer updated. The certified-heater list itself is kept by EPA's Office of Enforcement and Compliance Assurance, so confirm a model's certification with the dealer.
- Ask your local building department whether a permit and inspection are required before installing one.
- If you are replacing a stove because you are selling, the removal rule has its own paperwork. See our guide on selling a home with a wood stove.
What We Could Not Confirm
- Anything published only on the Jackson County, Josephine County, Medford and Grants Pass websites, which block our machine.
- Avista's Oregon incentives. The page did not load.
- Whether Energy Trust pays out when a heat pump replaces a wood stove, and whether the HOMES and HEAR rules exclude wood heat.
Sources
- IRS: Energy Efficient Home Improvement Credit
- IRS: FAQs for modification of sections 25C, 25D, 25E, 30C, 30D, 45L, 45W and 179D under Public Law 119-21 (FS-2025-05)
- Oregon DEQ: Woodstoves, financial assistance for replacing wood stoves
- Oregon Department of Energy: Community Heat Pump Deployment Program
- Oregon Department of Energy: Heat Pump Purchase Program
- Oregon Department of Energy: Home Energy Rebates
- Oregon Home Energy Rebates: HEAR
- Oregon Home Energy Rebates: HOMES program
- Illinois Valley Community Development Organization: Infrastructure and energy programs
- Energy Trust of Oregon: Residential heating solutions
- City of Ashland: Residential incentives (Ashland Electric)
- US EPA: EPA-certified wood stoves
- Multnomah County: Wood burning exchange
- Oregon Revised Statutes 468A.490: Residential Solid Fuel Heating Air Quality Improvement Fund
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