Inflation Reduction Act
INFLATION REDUCTION ACT
The Federal Inflation Reduction Act offers tax credits to homeowners equal to 30% of installation costs up to $1,200 ($2,000 for heat pumps).
Basic Program:
- Air Conditioners: Up to $600 tax credit*
- Heat Pumps: Up to $2,000 tax credit*
- Gas Furnaces and Boilers: Up to $600 tax credit*
- Advanced Main Air Circulating Fan: Must use no more than 2% of furnace’s total energy,
up to $50 tax credit
Heat Pump Program:
Up to $8,000 for all-electric Heat Pumps
Geothermal Program:
A tax credit to homeowners equal to 30% of installation costs for ENERGY STAR® geothermal heat pumps
* Products must be rated at the highest CEE tier (efficiency ratings)