Making the Latest Heat Pump Tax Credits Easier to Understand

August 14, 2024

Understanding the implications of the Inflation Reduction Act and its impact on pricing jobs for installing heat pumps or heat pump water heaters can be daunting. However, a new resource from ENERGY STAR aims to simplify this process, specifically tailored for selling and installing Air Source Heat Pumps, Heat Pump Water Heaters, and Electric Panel Upgrades. It’s crucial for both contractors and property owners to grasp these credits, as they can cover up to 30% of project costs.

Here’s a quick overview:

Total Annual Limit: The $2,000 heat pump credit can be combined with credits up to $1,200 for other qualified upgrades made in one tax year.

Effective Date: Products purchased and installed between January 1, 2023, and December 31, 2032.

Tax Credit: An amount taxpayers can claim on their federal tax return to reduce income tax owed.

Who Qualifies: Must be an existing home and principal residence (owned or rented). Does not apply for new construction and rental properties.

What to Keep: Customers should keep their receipts and any relevant materials, such as product labels, that identify the purchased product.

For a simple one-page explanation and a list of qualifying products, check out the resource provided by ENERGY STAR. 

Related Articles
Every contractor and worker relies on tools to do their job. However, injuries resulting from improper use or selecting the wrong tool for the job happen far too often. MCAA's Power & Hand Tool Safety Resources highlight the tools most likely to be involved in injury incidents and teach proper use of the tools to help prevent injuries. They’re just a few of MCAA’s educational resources that are free to MCAA members as a benefit of membership.…
The Manufacturer/Supplier Training area of MCAA’s website connects our contractor members with training opportunities available from the members of MCAA’s Manufacturer/Supplier Council.…
For 15 years, MSCA has proudly partnered with Convoy of Hope, coming together as a community to make a difference. Since our collaboration began, MSCA members have contributed over $750,000 in food, goods, labor, and financial support to this incredible organization. Join us at MSCA25 as we celebrate our partnership by giving back, and read on to learn how you can donate to our efforts.…
MCAA hosted its first Field Leaders Conference of 2025 from May 12-14 in Washington, DC. With over 140 registrants, the event provided an engaging and impactful experience for emerging leaders in the mechanical contracting industry. MCAA’s next Field Leaders Conference will take place in Toronto, ON from September 15-17. Registration will open May 27, 2025.…
Load More...