Take advantage of heat pump tax credits and rebates with Kevel Home Performance.
Learn more today.
415-213-5545The Inflation Reduction Act (IRA) of 2022 is the biggest single investment the US government has ever made in combating climate change. For homeowners looking to improve the energy efficiency of their homes, the two most important parts of the law are:
An updated and improved federal tax credit
The creation of two new forthcoming rebate programs
IRA incentives are just a few of the different incentives and rebate programs available to San Francisco homeowners. At Kevel Home Performance, we can help make home upgrades easy and affordable. Keep reading for information about the different incentives and how you can qualify.
The Energy Efficient Home Improvement Tax Credit
The Energy Efficient Home Improvement Tax Credit is a revised version of an older 25C tax credit. This 30% credit is available for any homeowners making upgrades to their existing homes (the credit is not available for new construction).
For heat pumps (both ducted and ductless mini splits), you can claim 30% of your installation costs, up to a max of $2,000. If your heat pump installation requires any electrical panel upgrades, you can also claim a 30% credit for those costs, with a limit of $600.
For high efficiency air conditioners, furnaces, and boilers, you can claim 30% of your installation costs, up to a max of $600.
For energy audits, you claim a credit of up to $150.
Tax credits are not like rebates. Instead of getting money back, or getting an instant discount, they simply reduce the amount of taxes (in this case federal taxes) you owe for the year in which you installed your heat pump system.
Inflation Reduction Act Rebates
The IRA also allocated funding for two new rebate programs, to be run by individual states.
The first is a program that calculates the amount of your rebate based on the percentage of energy savings your upgrades resulted in. These rebates will only be available for upgrades to existing homes.
The second rebate is focused on home electrification measures, and you can qualify whether you are upgrading your existing home or building a new home. These rebates will only be available for households that meet certain income thresholds.
Heat pump installation will qualify for both programs, but you’ll only be able to choose one or the other. Funding will be released on a state-by-state basis, so the rebates aren’t available yet and we’re still waiting for specific details about California’s programs—including who will be eligible and the actual rebate amounts. We will update this page as we receive more information.
Maximize Your Savings By Combining Incentives
There are many incentives available in San Francisco and California in addition to Inflation Reduction Act tax credits and rebates, and a homeowner could save $3,000 or more in total on heat pump installation by taking advantage of them all. But navigating what is currently available can be challenging, especially when some incentive programs change frequently.
At Kevel, we always sit down with new customers to review the currently available ways to reduce your upfront investment in heat pumps for your San Francisco home. Paying attention to details is just one of the ways that we work to provide comprehensive whole-home solutions!
