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Tax Credit for Heat Pumps: Savings and Eco-Friendly Homes

This new law introduces a tax credit for individuals installing energy-efficient air source heat pumps in their homes. This allows citizens to recover a portion of the costs associated with heating upgrades, promoting both savings and environmental protection.
Key points
You can receive a credit of up to 20% of the cost of installing a heat pump, with a maximum of $800.
The credit applies to heat pumps meeting high energy efficiency standards, installed in your primary residence.
It encourages replacing older heating systems (natural gas, propane, electric, oil) with more environmentally friendly solutions.
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Additional Information
Air Source Heat Pump Act of 2021
Print number: S 891
Sponsor: Sen. King, Angus S., Jr. [I-ME]
Process start date: 2021-03-23