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Federal Incentives

Inflation Reduction Act Tax Credits

FEDERAL INCENTIVES

INFLATION REDUCTION ACT — 25C

Air Source Heat Pump

Split ducted and non-ducted

Eligibility

Ducted: Heat pumps designated as ENERGY STAR Cold Climate that have an EER2 > 10

Ductless: ENERGY STAR Cold Climate heat pumps with SEER2 > 16 EER2 > 9 HSPF2 > 9.5

30%

of your total project costs up to $2,000

Electric Panel Upgrade Tax Credit

Eligibility

Any improvement to, or replacement of, a panelboard, sub-panelboard, branch circuits, or feeders which:

  1. is installed in a manner consistent with the National Electric Code,
  2. has a load capacity of not less than 200 amps,
  3. is installed in conjunction with, and enables the installation and use of:
    • any qualified energy efficiency improvements, or
    • any qualified energy property (heat pump water heater, heat pump, central air conditioner, water heater, furnace or hot water boiler, biomass stove or boiler)

30%

of your total project costs up to $600

Heat Pump Water Heaters

Eligibility

Heat pump water heaters that have earned the ENERGY STAR are eligible for this credit.

30%

of your total project costs up to $2,000

Home Energy Audit Tax Credit

Eligibility

A home energy audit means an inspection and written report with respect to a principal residence which:

  1. identifies the most significant and cost-effective energy efficiency improvements with respect to the residence, including an estimate of the energy and cost savings with respect to each such improvement, and
  2. is conducted and prepared by a certified home energy auditor

30%

of your total project costs up to $150

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The Inflation Reduction Act (IRA) offers many potential benefits for homeowners. This landmark legislation was designed to tackle inflation while promoting energy efficiency and sustainability. By offering incentives and rebates for energy-efficient upgrades like heat pumps, the IRA provides an excellent opportunity for homeowners to enhance their living spaces, reduce energy costs, and contribute to a greener future.

Take advantage of these benefits to improve your home’s comfort, value, and environmental impact.

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Heat Pump Icon

Heat Pump Tax Credits

The Inflation Reduction Act offers a heat pump tax credit valued at 30% of your total heat pump installation costs, with a maximum credit of $2,000. To qualify for this tax credit in a specific tax year, you need to install your heat pump within that year. For instance, to claim the credit on your 2024 tax return, ensure your heat pump HVAC system is installed by December 31, 2024.

This credit can be combined with additional home upgrade credits of up to $1,200 made within the same tax year. By embracing energy efficient heat pump technology, you’re not only enhancing your home’s comfort but also unlocking financial benefits.

Eligibility Criteria

Whether the experts at GEM help you select ducted or ductless mini-split heat pump systems, ensure they meet the necessary criteria.

Don’t let the technical jargon intimidate you. These numbers simply reflect the efficiency of your heat pump. Factors like home size and existing ductwork play a role too.

Not only will you save money, but you’ll also contribute to the United States’ transition to cleaner energy sources. Let the pros at GEM make your home cozier and more eco-friendly today!

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Ducted Systems

Your heat pump must proudly wear the ENERGY STAR Cold Climate label, boasting an EER2 greater than 10.

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Ductless Systems

ENERGY STAR Cold Climate heat pumps should flaunt SEER2 above 16, EER2 above 9, and HSPF2 above 9.5.

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