$2,000 IRA Tax Credit Eligible Heat Pumps

SEER2 ≥ 16

Seasonal Energy Efficiency Ratio (SEER2) must be at least 16 to qualify for the federal heat pump tax credit under the Inflation Reduction Act.

HSPF2 ≥ 9

Heating Seasonal Performance Factor (HSPF2) must be at least 9 for heating-focused tax credit eligibility. Cold climate models often exceed this significantly.

Up to $2,000 Credit

The IRA provides a 30% tax credit on qualified heat pump purchases, up to $2,000. This is a direct credit against taxes owed, not a deduction.

Extended Through 2032

The Inflation Reduction Act extended these tax credits through 2032, giving homeowners plenty of time to plan their energy-efficient upgrade.

Carrier's top-tier ductless system with an industry-leading 42 SEER2 rating and Greenspeed Intelligence for precise temperature control. Cold climate rated to -22°F.

Gree's flagship Sapphire delivers jaw-dropping 38 SEER2 efficiency at a fraction of premium brand pricing. Built with G10 inverter technology and cold climate performance to -22°F.

Ultra-efficient designer unit with industry-leading 33.1 SEER2 rating.

The flagship H2i wall-mounted unit delivers full heating capacity down to -13°F with industry-leading efficiency. Whisper-quiet indoor operation and 3D i-see Sensor for personalized comfort.

The XLTH series delivers full heating output down to -15°F — the lowest operating temperature in the industry. Purpose-built for extreme cold climates.

Award-winning designer wall unit with a sleek curved panel. Combines Daikin inverter technology with premium aesthetics and advanced air purification.

How do I claim the $2,000 heat pump tax credit?

After installing a qualifying heat pump, you'll receive documentation from your installer (including make, model, and efficiency ratings). When filing your federal taxes, use IRS Form 5695 to claim the credit. The credit applies to the year the system was installed and placed in service. Keep all receipts and manufacturer certifications.

Which heat pump brands qualify for the IRA tax credit on Long Island?

Most premium and mid-range heat pumps qualify, including models from Carrier, Trane, Lennox, Mitsubishi, Daikin, and Bosch. The key is meeting SEER2 ≥ 16 and HSPF2 ≥ 9 efficiency thresholds. Our team at Home+ Air & Heat provides documentation for all qualifying installations.

Can I combine the federal tax credit with PSEG Long Island rebates?

Yes! The federal IRA tax credit and PSEG Long Island utility rebates are separate programs that can be combined. Many Nassau County homeowners save $3,000-$4,000+ total when combining both incentives with an energy-efficient heat pump installation.

What's the difference between a tax credit and a tax deduction?

A tax credit reduces your tax bill dollar-for-dollar. If you owe $5,000 in taxes and have a $2,000 heat pump credit, you only pay $3,000. A deduction just reduces taxable income. The IRA heat pump incentive is a credit, making it more valuable than a deduction of the same amount.