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) | Weatherization Assistance Program (WAP) |
|---|---|---|
| Type | Tax Credit | Grant |
| Category | HVAC / Heat Pumps | Weatherization |
| Amount | 30% up to $2,000 | Average $7,669 per home |
| Max Amount | $2,000 | Varies by state |
| Level | Federal | Federal |
| Eligibility | Existing homes (principal residence). Must meet CEE or ENERGY STAR efficiency requirements. | Household income at or below 200% Federal Poverty Level. Priority for elderly, disabled, and families with children. |
| Applies To | Homeowners | Low-income homeowners and renters |
| Location | Nationwide | Nationwide |
| How to Claim | File IRS Form 5695 with your federal tax return. | Apply through your local Community Action Agency or state weatherization office. |
| Expiration | Available through 2032 | Ongoing federal program (expanded by IRA) |
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 →Free weatherization services for low-income households. DOE-funded, state-administered. Covers insulation, air sealing, furnace repair/replacement, and health/safety improvements.
Official source →