25C: Heat Pump Water Heater Tax Credit
Save money when upgrading to an energy-efficient water heater with a tax credit from the federal government.
Rebate Overview
Overview
The 25C Heat Pump Water Heater Tax Credit is a federal tax credit that offers homeowners 30% of the cost of installing a qualifying heat pump water heater, up to a maximum of $2,000. To be eligible, the heat pump water heater must be ENERGY STAR certified and meet the highest efficiency tier established by the Consortium for Energy Efficiency. This credit applies to installations completed before December 31, 2025. ([energystar.gov](https://www.energystar.gov/about/federal-tax-credits/heat-pump-water-heaters?utm_source=openai))
Benefits
Upgrading to a heat pump water heater can make your home more comfortable by providing consistent hot water while reducing energy bills. It also helps the environment by lowering greenhouse gas emissions associated with traditional water heating methods.
More Information
- Eligibility: Homeowners who install a qualifying heat pump water heater before December 31, 2025.
- Claiming the Credit: File IRS Form 5695 with your 2025 tax return to claim the credit.
- Program End Date: The 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: Water Heater Heat Pump
- Link: More details
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