If you’re thinking about upgrading your home’s HVAC system, now might be the perfect time. Thanks to the federal heat pump tax credit, homeowners across the U.S. can claim up to $2,000 in federal tax credits for qualifying heat pump installations. At Summers Comfort Heating & Air, we’ve helped families make energy-smart upgrades that pay off—not just in comfort, but in real long-term savings.
But what exactly is this credit? Who qualifies? And how can you take full advantage? We’ve got answers.
What Is the Heat Pump Tax Credit?
The heat pump tax credit is part of the federal Energy Efficient Home Improvement Credit (Section 25C), which was expanded under the Inflation Reduction Act.
Through December 31, 2025, homeowners can receive a 30% federal tax credit, capped at $2,000, for the cost of qualifying air-source heat pumps. The total annual tax credit limit is $3,200, including up to $2,000 for heat pumps and $1,200 for other energy-efficient upgrades.
More details are available directly from ENERGY STAR.
Who Qualifies for the Heat Pump Tax Credit?
Good news: most homeowners can qualify—if the system meets the criteria.
To be eligible:
The home must be an existing primary residence (not new construction or a rental).
The heat pump must meet ENERGY STAR and CEE Tier 1 or higher efficiency standards.
Installation must occur between January 1, 2023 and December 31, 2025.
A licensed HVAC contractor must perform the installation.
If you’re unsure whether your system qualifies, our team at Summers Comfort can help guide you in the right direction.
How Much Can You Save?
The heat pump tax credit offers 30% off the installed cost of a qualifying system, up to a $2,000 cap. This credit directly reduces the amount of federal tax you owe.
For example, if your new heat pump system costs $6,500, you could get a $1,950 tax credit—so long as the system meets the eligibility standards.
You can also stack this with other tax credits for things like insulation, exterior doors, or high-efficiency windows, for a combined total of $3,200 annually.
How to Claim the Heat Pump Tax Credit
To claim the credit, you’ll need:
The system’s manufacturer certification statement
Your detailed invoice and installation date
A completed copy of IRS Form 5695 when you file your federal return
This is a nonrefundable credit, meaning it reduces what you owe in taxes but won’t result in a refund if you owe less than the credit amount.
More info: IRS – Form 5695 Instructions
What Systems Qualify?
Not all heat pumps are eligible for the tax credit. To qualify, the unit must:
Be listed as an ENERGY STAR-certified air-source heat pump
Meet or exceed CEE Tier 1 efficiency standards
Be installed by a qualified contractor
You can view the full list of certified heat pumps here:
ENERGY STAR Product Finder
Other Ways to Save on Heat Pumps
The heat pump tax credit is just one way to cut costs. Depending on where you live, you may also be eligible for:
State and utility rebates
Manufacturer promotions or discounts
Low-income household incentives under IRA’s state-based rebate programs
Use the DSIRE database to explore local incentives in your area.
Why More Homeowners Are Choosing Heat Pumps
Aside from the savings, heat pumps offer year-round comfort. They:
Provide both heating and cooling in one system
Use less energy than traditional electric or gas systems
Run quietly and reduce carbon emissions
Work efficiently in mild and cold climates alike
Newer models have advanced features like variable-speed compressors, better humidity control, and smart thermostat compatibility. It’s no wonder they’re becoming a go-to choice for homeowners across the country.
At Summers Comfort, We Make It Easy
At Summers Comfort Heating & Air, we help customers explore systems that may qualify for the heat pump tax credit. Our team can explain what to look for in a high-efficiency system and guide you toward energy-smart options that fit your needs and budget.
Claim Your Heat Pump Tax Credit Before It Expires
If you’ve been thinking about upgrading, now’s the time. The heat pump tax credit is a great opportunity to improve your comfort, lower your energy bills, and earn back up to $2,000 from the federal government.
Not sure if a new system is right for you? We also offer expert heat pump repair and heat pump replacement services to help you make the best choice for your home and budget. Whether you’re upgrading for efficiency or addressing a specific issue, we’re here to help.
At Summers Comfort Heating & Air, we serve customers throughout Denham Springs, Baton Rouge, Walker, Central, Prairieville, and surrounding areas—but we’re here to help any homeowner looking to make smart, energy-efficient choices.
Call us today or schedule online to explore your options and lock in your savings before the credit expires at the end of 2025.
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