Heat Pump Rebate Calculator

The Inflation Reduction Act is a comprehensive legislation passed in 2022 that includes significant investments in clean energy and climate initiatives. It provides tax credits and rebates for energy-efficient home improvements, including heat pump installations, to help Americans reduce their energy costs and carbon footprint.

The IRA offers a 30% tax credit for heat pump installations, up to $2,000 per year. For lower-income households, additional rebates of up to $8,000 may be available through the High-Efficiency Electric Home Rebate Act (HEEHRA) program. Our calculator will help determine your specific savings based on your location and household information.

Not all heat pumps qualify. To be eligible for the federal tax credit, heat pumps must meet specific efficiency requirements set by the Consortium for Energy Efficiency (CEE). Generally, models with higher SEER, EER, HSPF, and COP ratings are more likely to qualify. Our heat pump comparison guides indicate which models meet these requirements.

The federal tax credit of up to $2,000 has no income limit. However, the larger rebates through the HEEHRA program are income-restricted, with the full rebate available to households making less than 80% of the Area Median Income (AMI) and partial rebates for those making 80-150% of AMI. State and utility incentives may have their own income requirements.

For federal tax credits, you'll claim them when filing your annual tax return using IRS Form 5695. For rebates through the HEEHRA program, these will typically be applied at the point of sale or through your contractor, though program implementation varies by state. For utility incentives, you'll usually need to submit an application directly to your utility provider, often with proof of purchase and installation.