Due to recent changes in law, the § 25C Energy Efficient Home Improvement Credit will no longer be available for equipment placed into service after December 31, 2025.
The Inflation Reduction Act of 2022 (IRA) provides homeowners across the United States with federal tax credits and rebates to update their heating and cooling systems with select high-efficiency solutions. This Act is designed to accelerate the adoption of all-electric HVAC equipment and lower utility bills for homes and businesses.
The Inflation Reduction Act is expected to reduce U.S. emissions by up to 40% by 2030.1 Qualifying heat pump installations may be eligible for up to a $2,000 federal tax credit for qualifying homeowners to support the conversion of homes to all-electric, high-efficiency solutions.
1. Environmental Protection Agency, Inflation Reduction Act (IRA) Overview. Jan 2023.
Heat pumps are an energy-efficient indoor comfort solution because they transfer heat to or from a space rather than creating it. Heat pumps also:
For eligible homeowners meeting specific IRS income requirements, installation may qualify for an $8,000 rebate under the Home Electrification & Appliance Rebate Program. State-by-state availability.
The Daikin FIT heat pump with adaptive inverter technology qualifies for the Inflation Reduction Act tax credit and may provide up to 30% energy savings* with proper installation. This compact, quiet heating and cooling solution for ducted homes meets the required energy efficiency standards and guidelines set by the legislation, promoting sustainability and helping reduce energy consumption.
* Up to 30% air conditioning savings when comparing an inverter 18 SEER2 system to a 12 SEER system.
