Air Source Heat Pump Tax Credit

Central heat pump systems cost between 12 000 and 20 000 depending on where you live and the type of air source heat pump technology you re installing there may be tax credits and rebates available.

Air source heat pump tax credit.

Geothermal heat pump tax credits more. Air source heat pumps this tax credit has expired heat pumps that are energy star certified meet the requirements for this tax credit. Tax credits for residential energy efficiency have now been extended retroactively through december 31 2020. For most homeowners this means the installation is complete and the equipment is ready for use.

Called heat pumps or ground source heat pumps as opposed to the more common air source equipment. The tax credit allows you to deduct 30 percent of the total system cost up to 1 500. 300 requirements uniform energy factor uef 0 82 or a thermal efficiency of at least 90. Hspf 8 5 eer 12 5 seer 15 package systems.

Air source heat pumps. Geothermal heat pumps get their heat from the ground and dump heat there too in air conditioning mode. The only hvac tax credits for 2019 are for geothermal heating and air conditioning. Most energy star certified water heaters meet the requirements of this tax credit.

Gas propane and oil furnaces and fans. When shopping look at the energy star tag which will state whether the unit qualifies for a tax credit. Federal hvac tax credit available for equipment purchased and installed in 2018 2020. Government renewed the 25c tax credit for high efficiency heating and cooling equipment.

To be eligible for the federal tax credit for geothermal your geothermal heat pump must be placed in service between october 3 2008 and december 31 2021. Hspf 8 eer 12 seer 14 see definitions more. In december 2019 the u s. 300 requirements split systems.

The products listed in the attachment are properly matched with a correct indoor coil and or furnace to achieve the energy efficiency criteria required to qualify for the tax credit. The credits for efficient equipment ran out at the end of 2016 and were not renewed in the bipartisan budget act of 2018. Air source heat pumps. A cooling efficiency of greater than or equal to 15 seer 12 5 eer or higher and a heating efficiency of greater than or equal to 8 5 hspf.

Non business energy property upgrades that qualify for tax credits. Learn more and find products. How much does a heat pump system installation cost. Central air conditioning cac gas propane and oil hot water boiler.

As a rough estimate you can expect a ductless air source heat pump installation to cost between 3 500 and 5 000 per indoor unit installed. There are no tax credits for efficient hvac equipment other than geothermal. Up to 10 of the cost to 500 or a specific amount from 50 to 300. Water heaters account for 12 of the energy consumed in your home.