Side-by-side comparison of these two energy incentive programs. See which one offers better savings for your situation.
| Feature | Heat Pump Tax Credit (Energy Efficient Home Improvement) | Home Insulation & Weatherization Credit |
|---|---|---|
| Type | Tax Credit | Tax Credit |
| Category | HVAC / Heat Pumps | Weatherization |
| Amount | 30% up to $2,000 | 30% up to $1,200 |
| Max Amount | $2,000 | $1,200 (annual aggregate) |
| Level | Federal | Federal |
| Eligibility | Existing homes (principal residence). Must meet CEE or ENERGY STAR efficiency requirements. | Existing homes (principal residence). Products must meet ENERGY STAR Most Efficient criteria. |
| Applies To | Homeowners | Homeowners |
| Location | Nationwide | Nationwide |
| How to Claim | File IRS Form 5695 with your federal tax return. | File IRS Form 5695. |
| Expiration | Available through 2032 | Available through 2032 |
30% tax credit for qualified heat pumps (air-source and geothermal), heat pump water heaters, and biomass stoves/boilers. Annual limit of $2,000 for heat pumps specifically.
Official source →30% tax credit for insulation, air sealing, energy-efficient windows ($600 cap), doors ($500 cap for all exterior doors), and home energy audits ($150 cap).
Official source →