HVAC / Heat Pumps Rebates & Tax Credits

The federal government offers a $2,000 tax credit for qualifying heat pump installations under the Energy Efficient Home Improvement Credit. Additionally, the IRA HEEHR rebates provide up to $8,000 for heat pumps for income-qualified households.

The tax credit (up to $2,000) is available to all homeowners regardless of income and is claimed on your tax return. The IRA HEEHR rebate (up to $8,000) is point-of-sale and income-dependent, targeting low and moderate-income households.

Yes. Most state heat pump rebates and utility incentives can be combined with federal tax credits. In some states, total savings can reach $10,000 or more when stacking all available programs.

Air-source heat pumps, ground-source (geothermal) heat pumps, and mini-split ductless systems typically qualify. The system must meet ENERGY STAR or CEE efficiency standards. Geothermal systems qualify for a separate 30% federal tax credit.

Federal tax credits are applied when you file your annual return. State rebates vary: some are point-of-sale discounts, while others take 4 to 12 weeks to process after application. Utility rebates typically arrive within 6 to 8 weeks.