Learn How Federal Tax Credits Make Heat Pumps More Affordable for Mainers

Valley Home Services is dedicated to doing two things for our customers in the Hermon and Brunswick, Maine, areas. The first is providing you with the highest-quality heat pumps on the market with professional, hassle-free installation and the best customer service around. The second thing is saving you money by keeping the cost of our services low and informing you about government tax credits and rebates for energy-efficient home improvements including heat pumps. Here are the heat pump savings currently available for Maine residents.

Why Install a Heat Pump?

Saving money is one of the best reasons to install a heat pump because they are an energy-efficient and cost-effective way to heat and cool your home — much less expensive to operate than gas, oil or electric systems. The savings you’ll see on your utility bills can be dramatic.

Heat pumps are also environmentally friendly, as they reduce greenhouse gas emissions by efficiently converting outside temperatures to heating and cooling for the home without the use of fossil fuel-created power, other than the small amount of electricity used to run the fan. Older heat pumps lost much of their efficiency in really cold weather, but modern heat pumps can provide warmth even in temperatures well below freezing, making them an attractive, and affordable, option for residents of Maine.

Heat Pump Tax Credit for 2023

The Inflation Reduction Act, passed in late 2022, contains provisions intended to give consumers incentives to purchase energy-efficient products, including a generous federal tax credit for heat pumps in 2023 and beyond. Homeowners will be able to claim a tax credit of 30% of the purchase and installation cost of a heat pump up to a limit of $2,000 annually.

Anyone with a tax liability can apply for the credit regardless of income, even renters who purchase qualifying equipment for their rental home. The only heat pump tax credit requirements are that the improvements must be done to your primary residence, it must be located in the U.S., and it must be an existing structure, not a new one. Also, keep in mind that these tax credits for heat pumps renew every year through 2032, so if you’re thinking of installing multiple units it might be a good idea to spread it out over time.

Heat Pump Rebates

The Inflation Reduction Act also made money available for heat pump rebates, administered through Efficiency Maine. Your federal tax credits can be combined with these rebates. If you purchase your heat pump from Valley Home Services, we will automatically apply these deductions to your quote and your final bill.

Town-specific heat pump rebates and grants are also available for residents of Bangor and Auburn. See their websites for further details on eligibility and how to apply.

Valley Home Services is your go-to source for heat pumps in Hermon and Brunswick, Maine. Contact us today to schedule a consultation.