Save Big on Qualifying Heat Pumps with Federal Tax Credits

Give yourself the gift of lower heating and cooling bills for 2025. Federal heat pump tax credits can save you as much as $2,000 on the purchase and installation of ducted or ductless air source heat pumps in your Stockbridge, GA home.

Why Switch to a Heat Pump

These ultra-efficient HVAC systems can reduce your energy usage by up to 75 percent, according to the Department of Energy. Despite their name, they heat and cool by transferring heated air inside or outside your home, depending on the season. Homeowners have switched to heat pump systems for reasons beyond energy savings. These systems generally produce more even heating and cooling than traditional systems, keeping your home more comfortable. They also work well in homes with additions or spaces that can’t accommodate ductwork.

How Tax Credits Work

The most significant drawback of installing a heat pump for many homeowners is the upfront cost. Fortunately, heat pump tax credits can help you manage the expense. Homeowners who purchase and install a heat pump system between January 1, 2023, and December 31, 2032, can receive up to $2,000 in tax credits. To receive the credit, you must claim the credit on your federal taxes for the year the heat pump was installed. For example, if you purchase a heat pump in March of 2025, you’d claim the credit using IRS Form 5695 on your 2025 taxes.

The credit lowers your tax liability and could result in a larger refund. You could use the refund toward paying off the heat pump installation if you financed the purchase. To claim the credit, you must be the homeowner and the heat pump must be installed at your primary residence. Landlords aren’t eligible for this tax credit.

Want to Learn More About These Savings?

Understanding the differences between rebates and tax credits can be overwhelming for some. If you’re interested in learning more about qualifying for heat pump tax credits, contact Jones Climate Control. We’ll be glad to answer your questions and guide you through the process.