Heat Pump Rebates and Incentives in the U.S.

Upgrading to a heat pump can be made more affordable through a mix of federal, state, and utility incentives. These programs help homeowners cut upfront costs while improving home efficiency.

Federal Tax Credits

• The Inflation Reduction Act provides a tax credit of up to 30% of the cost for qualifying heat pumps, capped at $2,000 per year.
• Credits apply to both equipment and installation when installed in an existing home (primary residence only).

State and Utility Rebates

• Many states and local utilities offer rebates, discounts, or low-interest financing to encourage heat pump adoption.
• Programs vary by region and utility provider, so the savings can range widely.
• To find rebates near you, check the Database of State Incentives for Renewables & Efficiency (DSIRE).

Why These Incentives Matter

• Lower upfront costs: Reduce installation expenses significantly.
• Faster payback: Incentives shorten the time it takes for energy savings to outweigh costs.
• Environmental benefits: More efficient systems reduce carbon emissions and reliance on fossil fuels.

Important Note

Rebate and credit programs change frequently. Always confirm current eligibility and requirements with your state, utility, or installer before making a purchase.

👉 View incentives in your area? Heat Pump Incentives.
👉 Want to estimate your real costs after incentives? Try our Heat Pump Cost Calculator.