1. Federal Tax Credits
The Energy Efficient Home Improvement Credit under the Inflation Reduction Act (IRA) offers a 30% tax credit (up to $2,000) for qualifying heat pump installations. Homeowners can claim this credit on their federal tax return.
2. High-Efficiency Electric Home Rebate Program (HEEHRP)
Low- and moderate-income households can receive rebates of up to $8,000 for heat pump installations through this federally funded program, administered by state energy offices.
3. State and Utility Rebates
Many states and local utilities provide additional rebates for heat pump installations. For example:
- California: Up to $3,500 through the TECH Clean California program.
- New York: NYSERDA offers incentives ranging from $500 to $5,000.
- Massachusetts: Mass Save® provides rebates up to $10,000.
4. Weatherization Assistance Program (WAP)
Low-income households may qualify for free or reduced-cost energy efficiency upgrades, including heat pumps, through WAP, funded by the U.S. Department of Energy.
5. Federal Financing Programs
The FHA PowerSaver Loan and Energy Efficient Mortgage (EEM) programs allow homeowners to finance heat pump installations with low-interest loans.
6. Renewable Energy Incentives
Some states offer additional incentives for homeowners who install heat pumps as part of a broader renewable energy system (e.g., pairing with solar panels).
7. How to Apply for Incentives
- Check EnergyStar.gov or your state's energy office for available rebates.
- Ensure your heat pump model meets ENERGY STAR or local efficiency standards.
- Consult a certified HVAC installer who can guide you through the rebate process.
- Keep purchase receipts and installation documents for tax credits and rebates.
Conclusion
With generous federal, state, and utility incentives available, investing in an energy-efficient indoor heat pump is more affordable than ever. Homeowners and businesses should explore funding options to maximize savings while improving energy efficiency.