Naturally, one of the primary concerns for anyone considering a new heating and cooling system is the associated cost. Once you have decided on the type of HVAC system for your home or business, it is time to start looking at the numbers.
If you are interested in purchasing a heat pump, you are in for a pleasant surprise. One of the many benefits of choosing a heat pump to heat and/or cool your home are the several rebates available. This is largely due to the increased incentives the state and federal governments provide to encourage the use of more eco-friendly technology. While there is a lot to say regarding the incredible energy-efficient power of a heat pump, let’s focus on the financial incentives available to ease the upfront cost of purchasing and installing a new system.
Federal Rebates and Tax Credits
- The Inflation Reduction Act’s Energy Efficient Home Improvement Tax Credit provides a $2,000 rebate on qualifying heat pumps to homeowners making the switch. One crucial requirement is that the heat pump must have a thermal efficiency rating of at least 75%. Thermal efficiency means the amount of work your system is putting in to get the results you want.
- Through the High-Efficiency Electric Home Rebate Program, homeowners can receive rebates of up to $8,000 for all electric heat pumps, with savings potential being determined by household income.
- Tax Section 25D is a tax credit for homeowners that covers 30% of installation costs for ENERGY STAR® geothermal heat pumps.
Massachusetts Savings
- Homeowners have the opportunity to save between $10,000 to $16,000 on heat pumps through MassSave, with potential full coverage for the entire system for those with lower incomes.
- Massachusetts DOER loans offer 0% financing opportunities of up to $50,000 for eligible homeowners.
There are many savings options to explore. Read more in our blog to help identify which ones you qualify for. You may even be able to combine them for added benefits!
We hope you found this article helpful and look forward to continuing to ensure your comfort and safety. Thank you for choosing CPS.
If you are in need of more information or would like to schedule a free consultation, you can reach us at 508-460-6691 or fill out this form.
