25C: Heat Pump Tax Credit

Rebate Overview

Overview

The 25C Heat Pump Tax Credit is a federal tax credit that offers homeowners 30% of the cost of installing a qualifying heat pump, up to a maximum of $2,000 per year. To qualify, the heat pump must be ENERGY STAR certified. You can claim this credit on your 2025 tax return by using Form 5695. Please note that this tax credit is set to expire on December 31, 2025.

Benefits

Upgrading to a heat pump can make your home more comfortable by providing efficient heating and cooling. It can also increase your home's value and reduce your energy bills. Additionally, using a heat pump helps the environment by reducing pollution from gas appliances.

More Information

• Eligibility: The heat pump must be installed in your primary residence in the United States.
• Claiming the Credit: To claim the credit, complete Form 5695 when filing your 2025 tax return.
• Expiration Date: The 25C Heat Pump Tax Credit expires on December 31, 2025.

Details

• Expiration date: December 31, 2025
• Incentive type: Tax Credit
• Amount: $ 2,000
• Maximum Amount: $ 2,000
• Maximum Percent: 30%
• Category: Heat Pump
• Link: More details

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QuitCarbon's free, expert guidance makes it simple and affordable to get fossil fuels out of our homes. We've helped thousands of homeowners with planning, installation, and rebates on upgrades like heat pumps, mini-splits, induction cooking, and EV chargers.

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