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) | IRA High-Efficiency Electric Home Rebate (HEEHR) |
|---|---|---|
| Type | Tax Credit | Rebate |
| Category | HVAC / Heat Pumps | Electrification |
| Amount | 30% up to $2,000 | Up to $14,000 |
| Max Amount | $2,000 | $14,000 total |
| Level | Federal | Federal |
| Eligibility | Existing homes (principal residence). Must meet CEE or ENERGY STAR efficiency requirements. | 100% rebate for <80% AMI, 50% rebate for 80-150% AMI. Each item has its own cap. |
| Applies To | Homeowners | Homeowners, renters |
| Location | Nationwide | Nationwide |
| How to Claim | File IRS Form 5695 with your federal tax return. | Point-of-sale discount through participating retailers/contractors. State-administered. |
| Expiration | Available through 2032 | Funds available until spent (through ~2031) |
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 →Point-of-sale rebates for individual electrification upgrades: heat pump ($8,000), heat pump water heater ($1,750), electric stove ($840), heat pump dryer ($840), electrical panel ($4,000), wiring ($2,500), insulation ($1,600).
Official source →