Federal Energy Efficient Heat Pump Tax Credit

U.S. Internal Revenue Service (Inflation Reduction Act)

Closed Energy Assistance

About This Program

Note: Congress ended this federal tax credit for installations after December 31, 2025. Projects placed in service by that date can still be claimed on your 2025 federal return (IRS Form 5695).

Federal tax credit under the Inflation Reduction Act for installation of qualifying heat pump systems. Credit equals 30% of costs up to $2,000. Must meet ENERGY STAR efficiency requirements.

30% of installation cost up to $2,000 maximum tax credit

Official program page checked live on 2026-06-22.

Data last verified 2026-06-09. How we verify our data.

This is a national program. In Morton Grove, IL, you can stack it with local programs like these:

Key Details

  • 30% tax credit for heat pump installation
  • Up to $2,000 maximum credit
  • Must meet ENERGY STAR requirements
  • Available for installations completed by December 31, 2025
  • No income restrictions

How to Apply

A grant-savvy contractor in Morton Grove, IL can handle the paperwork, inspections, and timelines so your funding releases on schedule. Getting matched is free.

You will likely need a contractor to apply

Projects like this almost always need a licensed contractor, and many grants ask for a written estimate as part of your application. Lining up a contractor in Morton Grove early keeps your application moving.

Get matched with a contractor

Each program sets its own contractor rules. Check the official program page for exact requirements.

Your application paperwork

Documents you will likely need

  • Your federal tax return for the year of the work (this benefit is claimed on your taxes, not through a separate application).
  • Proof you own and live in the home (deed, recent mortgage statement, or property tax bill).
  • A government-issued photo ID for every owner on title.
  • A written estimate from a licensed contractor for the work (many programs require this to apply).
  • A recent utility bill for the home (energy and weatherization programs use it to confirm service and usage).
  • The program's own application form, completed (use the official link or phone number on this page).

Requirements vary by program and locality. Confirm the exact rules on the official program page. We can help you prepare your paperwork, but you submit it yourself.

Deadline: Ended December 31, 2025 (federal law change)

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