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Faith Foundation Northwest

Nonprofit Heat Pumps

Frequently asked questions

Eligibility

Is my organization eligible?

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The full checklist is on the Program Details.

Program Details

Do we have to be a church, or a faith-based organization?

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No. This program is open to any 501(c)(3) nonprofit in Washington that meets the eligibility criteria.

Faith Foundation is an independent foundation. We do not ask about denominational affiliation, nor consider it in scoring.

We're a nonprofit, but we don't have our own 501(c)(3) letter. We're covered under a group ruling. Does that suffice?

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A group ruling suffices. A group ruling letter is accepted in place of an individual determination letter.

Do we have to be in an overburdened community to apply?

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No. While census tract designation is a priority in scoring, it is not an eligibility requirement. At least 40% of our rebates will go to applicants in an OFM-designated Overburdened Community or a census tract ranked 8, 9, or 10 on the Department of Health's Environmental Health Disparities map. Applications from outside those tracts are fully eligible and fully scored.

Our building already has electric heat. Can we upgrade it?

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Not through this program. Our rebates fund conversions away from fossil fuels. So, only spaces currently using a fossil fuel system for heating or cooling qualify.

Note: State HEAR rules do allow replacing heat pumps that are at least ten years old. We may be able to refer you to another administrator who may help for those purposes.

We rent our space. Can we still apply?

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Yes. Your lease has to allow improvements to the structure, and both the rebate and the resulting utility savings have to benefit your organization. Your landlord may be asked to sign an agreement confirming they will not evict you or raise your rent because of anticipated energy improvements, and that such conditions would pass to a buyer, if the building sells.

Your landlord may apply directly, as long as they meet the eligibility criteria themselves. If your landlord does not qualify but you do, the application should be yours.

Should we talk to our landlord before we apply?

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Yes, and early. As good stewards of funding, we want to ensure that each selected project is successful.

Money

How much can we get?

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Up to $75,000, covering 100% of eligible purchase and installation costs.

Do we have to put up matching funds?

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No match is required.

What if our project costs more than $75,000?

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Your organization will be responsible for any difference. We will require that you demonstrate secured funding for that remainder as a stipulation of a Memorandum of Agreement.

Can we combine this with a utility or federal rebate?

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Yes, as long as all rebates together do not exceed 100% of your project cost. One restriction: you can not receive rebates from two different State HEAR–funded programs for the same project, unless the Washington State Department of Commerce has authorized the two programs to collaborate. If you are not sure whether another rebate you are pursuing is State HEAR–funded, ask us.

Who gets paid, us or the contractor?

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You do. The rebate is paid to your organization. You choose your installer, hold the contract, and pay them directly. Faith Foundation will not be a party to that agreement. You submit the invoice to us (generally, post-installation) and we pay on it as soon as practicable. We hope to limit any carry of a $75,000 project on your own balance sheet.

We already replaced our furnace this year. Can we get reimbursed?

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Possibly. Retroactive payments are an option, but depend on specifics and on the Washington State Department of Commerce's requirements for the contract period. If you are interested, contact us with dates and details of what was installed.

Is the rebate taxable income to us?

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The answer can depend on your organization’s circumstances. We advise you to ask your own tax advisor to confirm.

Equipment and installation

What equipment can we get?

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Electric heat pumps for space conditioning: generally, air-source (ducted, ductless, or package terminal), plus any electrical service, panel upgrade, or wiring needed to support them.

If you have any questions about particular systems, ask us.

Are water heaters, dryers, or induction ranges covered?

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While State HEAR allows administrators to rebate such items, our program funds space conditioning only.

What exactly isn't covered?

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In sum, work necessary to install and run the heat pump is covered. Work the project merely reveals is not.

An incomplete list includes:

  • Weatherization and building envelope work — windows, doors, insulation, air sealing
  • Cooling-only air conditioning
  • Electric resistance heating
  • Any fossil fuel equipment, including fossil fuel heat pumps
  • Thermostats purchased separately from the heat pump
  • Portable or window air conditioners, heaters, or heat pumps
  • Solar, batteries, or other energy-generating or energy-storing equipment
  • EV charging equipment
  • Repair or maintenance of existing equipment
  • Utility connection or service fees
  • Remediation uncovered during removal — asbestos, rodent damage, rot
  • Extended warranties, unless bundled into your installer’s price
  • Upgrades to utility transmission or distribution systems outside your building

Can we get insulation or new windows too?

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No. Weatherization and building envelope work is not eligible.

One narrow exception: limited insulation, drywall, or duct work is covered when genuinely necessary to install and operate the equipment. E.g., sealing a section of duct your contractor opens up to install the heat pump is eligible. Adding wall insulation the contractor happens to notice is missing is not.

Is the thermostat included?

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Only if it comes as part of the heat pump equipment package. A thermostat purchased separately is not eligible.

What if the contractor finds asbestos or rot when removing the old system?

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While removal of the old equipment is covered, remediation is not. Any such costs have to come from another source. In an older building, we recommend budgeting a contingency before you start.

Can we pick our own contractor?

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Yes. We can also suggest qualified installers, on request. Our Technical Advisor will review all bids before installation begins to confirm equipment qualification; you never buy a system that turns out to be ineligible.

How do we know the equipment we want qualifies?

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You do not need to work through the standards yourself: send us the bid and we can tell you. If you or your contractor want to check in advance, equipment has to be certified by the below standards at the time we approve it. Equipment without these certifications can be used only if it can be shown to meet equivalent technical criteria.

If your contractor is proposing something outside the list, feel free to send us the specifications, along with the bid. We will review it.

EquipmentRequired certification
Commercial air-source heat pumpsAHRI Certified (any CEE Tier), or ENERGY STAR Certified Light Commercial HVAC
Residential-spec air-source heat pumps, where residential equipment meets the building's needsAHRI Certified at CEE Tier 1 Path A or Advanced Tier, or ENERGY STAR Certified
Ground-source heat pumpsENERGY STAR or AHRI CEE Certified

Are there any rules about refrigerants?

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Yes. Refrigerants have to comply with Washington Department of Ecology and EPA global warming potential rules. Low-GWP refrigerants listed by CARB or the EPA SNAP program should be used where that's technically and economically feasible.

Generally, your installer will ensure such compliance. As needed, our Technical Advisor can confirm during bid review.

Do we need permits?

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Yes. Any HVAC and electrical work requires some permits.

Permit fees are an eligible expense, including permits for decommissioning the old fossil fuel equipment.

Does prevailing wage apply to our installation?

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The rebate is paid to your organization. That means you hold the installation contract directly; we do not subcontract the work. Prevailing wage is not a concern of this rebate. You may wish to contact Department of Labor & Industries for your specific arrangement.

Applying

When can we apply?

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Generally, applications will be accepted from September 1 through September 30, 2026.

Can we get help with the application?

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Yes. Technical support is available throughout the application window. Email rebates@faith.foundation with any questions. We will reply, usually within two business days. If a question needs a conversation, we can set up a call.

What documents do we need to complete the application?

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No documents are required to be submitted as part of the application process. If your organization is selected:

  • Your IRS 501(c)(3) determination or group ruling letter
  • A payroll readout showing staff size and hours with salaries redacted
  • Contractor bids for Technical Advisor review
  • If your project exceeds $75,000, documentation of secured funding required in excess of the award.
  • After installation: utility bills from the month after installation and the same month a year prior.

Why do you need our old utility bill?

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A primary goal of this program is to reduce fossil fuel emissions. We would like to measure that impact.

When will we hear back?

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October 2026. When you hear from us, we will tell you whether you are selected, placed in reserve, or not funded this cycle.

After you're selected

When would installation happen?

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Selected applicants install between October 1, 2026 and January 31, 2027. Reserve applicants install between February 1 and April 30, 2027, if funding remains.

What obligations may we have after installation?

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We will conduct a video site visit to confirm standards are met, including display of a sticker on the equipment noting equipment as funded by Climate Commitment Act funding. You will send us your first utility bill after installation along with the same month's bill from the year before. Finally, you may sign a Closeout Memorandum.

Will anyone visit our site?

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We verify installation by video site visit. Separately, the Washington State Department of Commerce may conduct monitoring that can include desk reviews, document requests, virtual visits, and on-site visits. These may occur during the award period and/or the records retention period afterward.

How long do we keep records?

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The specific term of the period will be included in Memoranda of Agreement. Retained project documentation includes bids, invoices, permits, utility bills, and the signed agreements.

About the funding

Where does the money come from?

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Washington's Climate Commitment Act, administered through the Washington State Department of Commerce's State Home Electrification and Appliance Rebates Program. This is state funding.

For contractors

We're an HVAC contractor. What do we need to know?

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Faith Foundation will not contract for installation. Before work begins, we will review your bid to confirm the equipment meets the program's certification standards. Send it through your customer. Specific standards are listed above.

What documentation do you need from us?

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An itemized bid. The invoice should include: equipment type, brand, model number, certification numbers, and efficiency ratings; itemized costs; and permit numbers once pulled. Commerce requires all of it in quarterly reporting, and a complete invoice moves payment faster.

If you propose equipment outside the certification list, include the specifications so our Technical Advisor can assess equivalence.

Can we recommend this program to a nonprofit customer?

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Yes! Please do.

Have a question that we didn't cover here?

Start a conversation:

rebates@faith.foundation