Inflation Reduction Act: Mini-Split Heat Pump tax credit
Save money on your mini-split heat pump upgrade with a tax credit from the federal government.
Rebate Overview
Overview
The Inflation Reduction Act offers a tax credit for installing ENERGY STAR certified mini-split heat pumps. This credit covers 30% of the project cost, up to a maximum of $2,000 per year. You can claim up to $2,000 total between heat pump water heaters and heat pumps each year.
Benefits
Upgrading to a mini-split 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 lowering greenhouse gas emissions.
More Information
- The credit applies to heat pumps installed between January 1, 2023, and December 31, 2032.
- To qualify, the heat pump must meet or exceed the highest efficiency tier established by the Consortium for Energy Efficiency.
- The credit is available for both primary and secondary residences but not for rental properties.
- Upgrades completed in 2025 and tax credits claimed for those projects on 2025 tax returns (filed in early 2026) should be safe.
- The credit is nonrefundable, meaning you cannot receive more back than what you owe in taxes.
- Keep all receipts and records of your purchase and installation to claim the credit.
Details
- Expiration date: December 31, 2032
- Incentive type: Tax Credit
- Amount: $ 2,000
- Maximum Amount: $ 2,000
- Maximum Percent: 30%
- Category: Mini Split 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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