Tax incentives for heat pumps

Tax credits for heat pumps: Starting in 2023, you are eligible for a federal tax credit that will cover 30% up to $2,000 of the heat pump cost and installation. This tax credit is capped at $2,000 per year. If you are considering multiple energy upgrades, spacing those projects out over time can help you maximize the annual incentives between now and when they expire in 2032.

Rebates for heat pumps: If you meet the household income requirements, you may also be able to use rebates to get a heat pump. The rebates will all go through the state governments — thus, it’ll vary from state to state what agency is administering those rebates.

  • Home Heating and Cooling (HVAC) Heat Pump:
    • 100% rebate (up to $8,000) for low income*
    • 50% rebate for moderate income**
    • 30% tax credit (up to $2,000) for higher income
  • Hot Water Heat Pump
    • 100% rebate (up to $1,750) for low income
    • 50% rebate for moderate income
    • 30% tax credit (up to $2,000) for higher income
  • Electric Panel Upgrade
    • 100% rebate (up to $4,000) for low income
    • 50% rebate for moderate income
    • 30% tax credit (up to $600) for higher income
  • Electric Wiring
    • 100% rebate (up to $600) for higher income
    • 50% rebate for moderate income