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) | Residential Clean Energy Credit (Solar) |
|---|---|---|
| Type | Tax Credit | Tax Credit |
| Category | HVAC / Heat Pumps | Solar |
| Amount | 30% up to $2,000 | 30% |
| Max Amount | $2,000 | No cap |
| Level | Federal | Federal |
| Eligibility | Existing homes (principal residence). Must meet CEE or ENERGY STAR efficiency requirements. | Homeowners with federal tax liability. Must own the system (not lease). New or existing homes. |
| Applies To | Homeowners | Homeowners |
| Location | Nationwide | Nationwide |
| How to Claim | File IRS Form 5695 with your federal tax return. | File IRS Form 5695 with your federal tax return. Credit reduces your federal income tax dollar-for-dollar. Excess credit carries forward. |
| Expiration | Available through 2032 | 30% through 2032, 26% in 2033, 22% in 2034 |
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% federal tax credit for solar panel systems installed on primary or secondary residences. Covers solar PV panels, solar water heaters, battery storage (3+ kWh), and installation labor costs.
Official source →