In August, President Biden signed the Inflation Reduction Act into law, a comprehensive energy policy bill that has a record $369 billion reserved spending for climate and energy initiatives. This legislation offers several tax credits and rebates that reward homeowners for purchasing higher efficiency, ENERGY STAR®-certified and Consortium for Energy Efficiency-specified equipment.

What you need to know:

What kinds of tax credits and rebates are available to homeowners?

The Inflation Reduction Act of 2022 includes several tax credits for the installation of high-efficiency residential heating and cooling products. These credits include:

Nonbusiness Energy Property Credit (Tax Section 25C)

Effective January 1, 2023, this tax credit gives homeowners up to 30% of the total of product and installation costs. The installed product must meet Consortium for Energy Efficiency’s highest efficiency tier. Available Tax Credits are up to $2,000 for qualified heat pumps, and $600 for qualified air conditioners and furnaces. Annual credit limit resets every year.

High-Efficiency Electric Home Rebate Program

* An income-dependent rebate to eligible homeowners.

Homeowners can receive:

• Up to $8,000 for all-electric heat pumps
• Up to $4,000 for electrical load service center upgrade
• Up to $2,500 for electric wiring
• Up to $14,000 maximum for all eligible measures

* Up to $8,000 for households less than 80% of Area Median Income and $4000 for 80-150% of Area Median Income

What equipment qualifies for the tax credits?

Eligible products include high-efficiency heat pumps, air conditioners, and furnaces. Fujitsu will be updating this page as more information becomes available.