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 Home Efficiency Rebate (HOMES) |
|---|---|---|
| Type | Tax Credit | Rebate |
| Category | HVAC / Heat Pumps | Whole Home |
| Amount | 30% up to $2,000 | Up to $8,000 |
| Max Amount | $2,000 | $8,000 |
| Level | Federal | Federal |
| Eligibility | Existing homes (principal residence). Must meet CEE or ENERGY STAR efficiency requirements. | Income-based: full rebate for <80% AMI, 50% rebate for 80-150% AMI. Must achieve modeled energy savings. |
| Applies To | Homeowners | Homeowners, renters (with landlord approval) |
| Location | Nationwide | Nationwide |
| How to Claim | File IRS Form 5695 with your federal tax return. | Applied at point of sale through participating 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 rebate for whole-home energy efficiency retrofits. $2,000-$4,000 for moderate income, $4,000-$8,000 for low income households achieving 35%+ energy savings.
Official source →