Estimated read time: 3-4 minutes
The chance for homeowners to get a rebate on a new heat pump is slipping away fast.
At the end of 2025, the Energy Efficient Home Improvement Credit (EEHIC) is no longer accessible. For consumers, this means the opportunity to get up to a $2,000 heat pump rebate goes away on Jan. 1, 2026.
The EEHIC or "clean energy credit" is part of the Inflation Reduction Act of 2022, according to the Internal Revenue Service (IRS). To encourage homeowners to update their appliances and climate control systems to more energy-efficient models, the government started offering rebates on those purchases.
In 2024, more than 31,000 Utahns filed a tax return with the clean energy credit for the previous year, according to the IRS.
There are many ways you can save on energy-efficient updates for your home. For residential properties, homeowners can use the credit toward:
- Electric or natural gas heat pump water heater.
- Electric or natural gas heat pump.
- Central air conditioner.
- Natural gas, propane, or oil water heater.
- Natural gas, propane, or oil furnace or hot water boiler.
- Biomass stove or boiler.
- Oil furnace or hot water boiler.
- Qualified improvement to, or replacement of, a panel board, sub-panelboard, branch circuits, or feeders.
- Each improvement comes with credit limitations and must meet strict requirements.
The qualifications to earn the credit
For heat pumps specifically, there are some things to know before you swipe your card. New pumps must meet or exceed the Consortium for Energy Efficiency's highest efficiency tier. If you're not sure where to start looking for a new pump, ask one of the experts at AllStar Service and Repair. They can help you get the most out of the energy credit and still find a model that's best for your home and needs.
Homeowners who choose to update their heat pump to an eligible model can get 30 percent of the cost of an electric or gas heat pump water heater, up to $2,000. They must live in the house in which they are installing the new equipment (landlords are not eligible).
How it works
When you decide to update your heat pump, you'll need to take a look at the options eligible for the credit.
The CEE has an updated spreadsheet with models that meet the strict criteria.
A simpler route would be to call in someone who knows the industry in and out. The AllStar Service and Repair teams can take a look at your property, listen to your needs and wants, and recommend eligible pumps.
Once you've bought your new pump and it's installed, keep all of the paperwork.
When you file your taxes, you'll fill out form 5695 with the information from your upgrade.
The credit comes to you in the form of a tax deduction. So if you would end up owing money on your taxes, that credit will lower your bill. If you don't owe anything, that credit will add to your tax return refund.
Schedule your service before it's too late
Starting Jan. 1, 2026, homeowners will no longer have the option to upgrade and save. Scheduling your service now is crucial to make the deadline for up to $2,000 in heat pump credits.
Call or go online to request your appointment with the experts at AllStar Service and Repair. They have locations in Utah, Salt Lake and Summit Counties so you can find a qualified professional in the neighborhood.
