2024 Tax Credits For Heat Pumps 2024. The energy efficient home improvement tax credit, authorized through president biden’s inflation reduction act, provides taxpayers with financial incentives to obtain a home. Increases the percentage of the credit from 10% to 30% of equipment and installation cost.
The heat pumps must meet specific efficiency criteria,. For heat pump and heat pump water heater projects, the tax credit amount is 30% of the total project cost (includes equipment and installation), up to a $2,000 maximum.