what incentives are there for installing a heat pump?

The Inflation Reduction Act (passed in October 2022) provides substantial rebates and tax credits to homeowners for increasing the energy efficiency of their homes. The biggest of these pertain to your home’s heating and cooling systems:

• Up to $8000 for upgrading to a high efficiency heat pump

• Up to $2500 for upgrading wiring and breaker boxes to handle the load of heat pumps and other electric appliances.

How much Do i qualify for?

If you upgrade to a high efficiency heat pump anytime after January 1st, 2023, you will automatically qualify for a $2000 tax credit.

There is also a program currently being developed for low-medium income homeowners that will provide up to $8000 (in the form of an instant rebate) for installing a high efficiency heat pump. This means that many homeowners will be able to upgrade their heating system for absolutely free.

When will these incentives be available to hoosiers?

The $2000 tax credit is currently available to ALL homeowners as of January 1st, 2023.

The $8000 rebate program is currently being designed by the Department of Energy is expected to be rolled out in early 2025. We will provide updates on this as more info is made available.

What exactly is a heat pump anyway?

A heat pump is a system that can heat and cool your home using only electricity. On the surface, they look very similar to a normal furnace/AC system — an air handler inside your home that delivers warms air through your ductwork and a condenser unit outside your home — but instead of using gas or inefficient electric coils to generate heat, heat pumps use compressed refrigerant to efficiently bring heat inside your home.

Do rental homes or vacation homes qualify?

No, these incentives only apply to your primary residence.

Do all heat pumps qualify?

No, only heat pumps that meet the highest efficiency standards qualify. The current metrics for deciding which ones qualify are a bit complicated, but we are happy to explain your options if you would like for us to give you an estimate.

HOW do i sign up?

The first step would be for us to do a free site visit to look at your existing HVAC system and layout. We can then give you a few options and discuss which ones qualify for the tax credits. Please fill out the form below and we will be in touch shortly.