Rebates & Tax Incentives

2023

Rebates & Tax credits available to homeowners

We continuously check for federal and state rebates and tax credits for our clients. We try to update this page with the latest information. Your Kool Koncepts representative will also check on any rebates and incentives when they are discussing your purchase to make sure you get all of the possible incentives and tax credits available - both state and federal.


You can view all of the current energy saving government tax incentives and rebates here

View Rebates on TRANE
Inflation Reduction Act of 2022

New federal income tax credits are available through 2032 providing up to $3,200 annually to lower the cost of energy efficient home upgrades by up to 30 percent. Improvements such as installing:

  • heat pumps
  • heat pump water heaters
  • insulation, doors and windows
  • electrical panel upgrades
  • and more
Residential Clean Energy Credit

Homeowners can also take advantage of the modified and extended Residential Clean Energy credit, which provides a 30 percent income tax credit for clean energy equipment, such as rooftop solar, wind energy, geothermal heat pumps and battery storage through 2032, stepping down to 22 percent for 2033 and 2034. 

Energy Efficiency & Energy Star Tax Credits

Energy Star and IRS Updates

Federal, State and Manufacturing

Rebates & Tax Credits

If you make energy improvements to your home, tax credits are available for a portion of qualifying expenses. The credit amounts and types of qualifying expenses were expanded by the Inflation Reduction Act of 2022.

The information below and on the IRS Home Energy Tax Credits page can help you compare the credits and decide whether they apply to expenses you've already paid or will apply to improvements you're planning for the future.


The following HVAC items are included:

  • Central air conditioners
  • Water heaters
  • Furnaces
  • Boilers
  • Heat pumps


 The amount of the credit you can take is a percentage of the total improvement expenses in the year of installation:

  • 2022: 30%, up to a lifetime maximum of $500
  • 2023 through 2032: 30%, up to a maximum of $1,200 (heat pumps, biomass stoves and boilers have a separate annual credit limit of $2,000), no lifetime limit

Get details on the Energy Efficient Home Improvement Credit.

2023 HEEHRA Heat Pump Rebate

High-Efficiency Electric Home Rebate Act (HEEHRA) rebate provides up to $14,000 to cover various costs to electrify homes in low-income and moderate-income households.

Program Requirements
  • Household incomes less than 80% of your area’s median income, are eligible for the $8000 max rebate for a new heat pump.
  • Household income between 81-150% of your area’s median income are eligible to receive up to 50% of the maximum heat pump rebate.
  • Household income exceeds 150% of your area’s median income are not eligible for the HEEHRA rebates but can still receive a 30% tax credit of up to $2,000 on a new heat pump.

Heating Equipment

Incentive Type: Tax Credit 

Incentive Amount: 30% of the cost paid by the consumer, up to $600 per year. 

How to Access: Submit IRS Form 5695 when filing your taxes if you meet the requirements detailed on IRS.gov. 

Subject to a cumulative, annual cap of $1,200. 

⚠️ Heat pumps are another option for energy-efficient home heating. Credits exist for both air-source and geothermal heat pumps, which could save you additional money on your monthly costs in the long-run. 

Heat Pump Tax Credits

Amount: 30% of the cost paid by the consumer, up to $2,000/year tax credit  is available.

For the tax credit, submit IRS Form 5695 when filing your taxes. if you meet the requirements detailed on IRS.gov.

⚠️ Credits exist for both air-source and geothermal heat pumps.

⚠️️ Consumers have a $2,000/year limit in total for heat pumps, heat pump water heaters, and biomass stoves/boilers. Example: if you claimed $1,000 for a heat pump and $1,000 for a biomass stove, you could not also claim a 30% credit for a heat pump water heater in the same year. However, you could claim up to $1,200 for other incentives like windows, doors, AC, electric panel, etc., for a total of up to $3,200 in credits for the year. 

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