Tax Credit Rebates

Federal Tax Credit – 30% of Project Cost (Up to $2,000)

You may be eligible for the Federal Tax Credit for Air Source Heat Pumps, which covers 30% of the project cost, up to a maximum of $2,000. Any combination of heat pumps, heat pump water heaters, and biomass stoves or boilers are subject to this annual limit. This tax credit can be combined with other utility rebates, but it applies only to existing homes and principal residences. New construction and rental properties do not qualify.

Eligible residences include houses, houseboats, mobile homes, cooperative apartments, condominiums, and manufactured homes. The overall total limit for an efficiency tax credit in one year is $3,200, with a separate limit of $1,200 for a combination of home envelope improvements, including windows, doors, skylights, insulation, electrical upgrades, furnaces, boilers, and central air conditioners.

How to Claim the Tax Credit & Check Eligibility

To claim the tax credit, purchases must be made on or after January 1, 2025, and on or before December 31, 2032, with claims submitted by December 31, 2032. Homeowners must keep all purchase and installation receipts and file IRS Form 5695 when submitting their tax return.

To check rebate eligibility for your specific location, visit the ENERGY STAR Rebate Finder at https://www.energystar.gov/rebate-finder and enter your ZIP code.

Tax Credit Eligible ENERGY STAR Certified Air-Source Heat Pumps