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

FUNCTIONAL CATEGORY

EQUIPMENT TYPE

WHO CAN APPLY?

LAYERABLE?

Yes

INCOME QUALIFYING?

No

REQUIREMENTS:

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