Replacing an HVAC system or a water heater has become more expensive. However, savvy homeowners can take advantage of financial incentives to help alleviate these expenses. Homeowners in Montana who want to upgrade to a heat pump or water heater can benefit from several rebates and tax incentives through the Inflation Reduction Act (IRA), the 25C tax credit, and state and utility provider incentives.
Let’s go over the resources that are available. When you need a heat pump HVAC system or a heat pump water heater installation in Manhattan, MT, Ambient Air Solutions, Inc. is the contractor who can help you make sense of the incentives that are available so you can maximize the savings.
Federal Tax Credits (25C Tax Credit)
The 25C Energy Efficient Home Improvement Tax Credit allows homeowners to claim a tax credit for qualifying home improvements including heat pump HVAC systems and heat pump water heaters.
- Heat Pumps: Homeowners can receive a tax credit of 30% of the cost, up to $2,000, for installing a qualifying air-source heat pump system for heating and cooling their homes
- Heat Pump Water Heaters: A tax credit of 30% of the cost, up to $2,000, is also available for electric heat pump water heaters.
These tax credits only apply to heat pumps and heat pump water heaters that meet certain efficiency standards. We can help homeowners choose a heat pump or water heater that is eligible for the 25C tax credit.
Inflation Reduction Act (IRA) Rebates
The Inflation Reduction Act offers rebates for heat pump installations through two programs.
High-Efficiency Electric Home Rebate Program
This program provides point-of-sale rebates to low- and moderate-income households for installing high-efficiency electric appliances, including heat pumps.
- Rebate for Heat Pumps: Up to $8,000 for installing a qualifying heat pump.
- Rebate for Heat Pump Water Heaters: Up to $1,750 for installing a heat pump water heater.
Home Efficiency Rebates
This program offers rebates based on the overall energy savings achieved through upgrades, including heat pump installations.
- Households can receive rebates of up to $4,000 or $8,000 for low- to moderate-income households if they achieve 20% or more in energy savings.
State and Utility Rebates
While the federal incentives provide substantial savings, homeowners in Montana may also find additional rebates through local utilities or state energy programs.
- NorthWestern Energy: Offers rebates for installing energy-efficient heat pumps and water heaters. The amount varies based on the type and efficiency of the equipment installed.
- The City of Bozeman: Offers a $500 rebate program for water customers who install a qualifying electric heat pump water heater. Customers can receive an additional $75 for participating in a satisfaction survey following the installation.
To maximize savings, we can help Montana homeowners make sure they qualify for both federal and state incentives, confirm eligibility criteria, and ensure the new heat pump or heat pump water heater meets the required energy-efficiency standards.
Contact Ambient Air Solutions today for professional water heater installation in Manhattan, MT. Simplifying Heating & Cooling!
