Inflation Reduction Act: Heat Pump tax credit
Improve home efficiency and save money with this heat pump tax credit from the federal government.
Rebate Overview
Overview
The Inflation Reduction Act: Heat Pump Tax Credit is a tax credit that helps homeowners save on energy-efficient upgrades. To qualify, the heat pump must meet ENERGY STAR requirements. You can claim up to $2,000 per year for heat pump water heaters and heat pumps. This credit covers 30% of the project cost, with a maximum of $2,000 annually. Upgrades completed in 2025 and claimed on your 2025 tax return (filed in early 2026) should be safe. However, the Trump administration has indicated a desire to repeal parts of the Inflation Reduction Act, which may eliminate this tax credit starting with the 2026 tax year. QuitCarbon is monitoring this closely and will update this guidance as changes become clear.
Benefits
Upgrading to a heat pump can make your home more comfortable and energy-efficient. Heat pumps provide both heating and cooling, reducing your energy bills. They also help the environment by lowering greenhouse gas emissions. Installing a heat pump can increase your home's value and appeal to future buyers.
More Information
- To qualify, the heat pump must meet ENERGY STAR requirements.
- The credit covers 30% of the project cost, up to $2,000 per year for heat pump water heaters and heat pumps.
- Upgrades completed in 2025 and claimed on your 2025 tax return (filed in early 2026) should be safe.
- The Trump administration has indicated a desire to repeal parts of the Inflation Reduction Act, which may eliminate this tax credit starting with the 2026 tax year. QuitCarbon is monitoring this closely and will update this guidance as changes become clear.
Details
- Expiration date: December 31, 2032
- Incentive type: Tax Credit
- Amount: $ 2,000
- Maximum Amount: $ 2,000
- Maximum Percent: 30%
- Category: Heat Pump
- Link: More details
Maximize Your Savings with QuitCarbon
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.
QuitCarbon is a certified B Corp and ENERGY STAR® partner that provides free assistance with clean energy upgrades.
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