IRA Fact Sheets
25C Residential Energy Efficiency Tax Credit and 25D Residential Clean Energy Tax Credit
The 25C and 25D tax credits incentivize household electrification by lowering the total cost of qualified electrification upgrades. 25C provides a capped 30 percent tax credit for air-source heat pumps, heat pump water heaters (HPWHs), qualifying electrical panel upgrades, select weatherization measures, and energy audits. 25D provides an uncapped 30 percent tax credit for rooftop solar, battery storage, and geothermal heat pumps.
The Electrification Rebates Program provides point-of-sale consumer discounts — up to $14,000 — to enable low- and moderate-income households across America to electrify their homes. Notably, households will experience the point-of-sale rebates as immediate, off-the-top discounts when making qualifying electrification purchases.
What the Inflation Reduction Act Means for Contractors and Electrification
The Inflation Reduction Act (IRA), signed into law in August 2022, includes $200 million in electrification and energy efficiency contractor training grants, as well as contractor incentives per qualifying electrification (up to $500) and per qualifying energy efficiency project ($200).
What the Inflation Reduction Act Means for Heat Pump Manufacturers
The Inflation Reduction Act (IRA), signed into law in August 2022, has the potential to reshape the HVAC economy through manufacturing investments, demand-side incentives, and innovative low-cost financing. These programs can be leveraged to support an influx of hundreds of billions of dollars into the clean energy economy and create over 670,000 new clean manufacturing jobs and 900,000 new contractor jobs.