Federal Tax Credit
Federal Tax Credit
Save up to $2,000 - Federal Tax Credit on Heat Pump Water Heater Projects
Offers and Eligibility are subject to change. Please work with a tax professional to review your eligibility
Federal Tax Credit
Federal Tax Credit
TAX CREDIT
30% of the costs up to $2,000
LAYERABLE?
Yes
INCOME QUALIFYING?
NoREQUIREMENTS:
Requirements for 25C Energy Efficiency Home Improvement Residential Tax Credits under the Inflation Reduction Act (IRA)
Eligible for 30% of costs, including labor, up to yearly maximum limit of $2,000 for heat pump water heater installs on existing home, and not for a newly constructed home.
The total annual credit limit may be up to $3,200 for 25C tax code, which will allow the annual $2,000 limit for heat pump water heaters to be paired with the annual $1,200 limit for building envelope improvements. Refer to the IRS Fact Sheet for latest information. IRS Fact Sheet