What are heat pump tax credits?

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By installing a qualified air source heat pump, you can qualify for a heat pump tax credit of up to $2,000. This is the largest IRA incentive for any single project. You may qualify if you’re replacing an old heat pump and installing a new one that meets the Consortium for Energy Efficiency (CEE) tier requirements in your region. Today’s heat pumps are suitable for homes in any climate. If you’re in a northern state with frigid winters, consider a dual-fuel heat pump system. This is when you install a heat pump and gas furnace together, getting the best of both worlds as the furnace can kick on to help keep you comfortable no matter the outdoor temperature.