What Heat Pump Rebates & Tax Credits are Available to Montana Homeowners?

Heat pumps are some of the best heating and cooling systems that you can install in your home in Montana. These HVAC systems offer improved energy efficiency and indoor air quality by transferring heat from place to place rather than generating it. Unfortunately, heat pumps can also be expensive to purchase and install. The good news is that after purchasing a heat pump to maintain consistent temperature and indoor air quality in your home, you may be able to get some of that money back.

Several forms of heat pump rebates and tax credits are available to homeowners living in Montana. A tax credit is a certain amount of money that will be subtracted from the taxes you owe. A rebate is a direct, monetary refund that you may receive after a purchase. Read on to learn about some of these credits and rebates so that you can save money on your next heat pump installation.

How You Can Get Money Back After Buying a Heat Pump

There are several different types of financial incentives for heat pump purchases that are available to Montana homeowners at both the state and federal level. These include the following:

• Federal Tax Credits for Heat Pumps

The IRS offers tax credits to homeowners nationwide when they purchase an energy efficient HVAC system. This Energy Efficient Home Improvement Credit can cover up to 30% of the installation of a new HVAC system for qualifying homeowners in Montana. Due to their superior energy efficiency, heat pump installations qualify for this federal tax credit, which can net you up to $2,000 off the taxes you owe. Notably, this tax credit is more substantial than that offered for the installation of air conditioners, boilers, and furnaces, for which the credit is capped at $600. This federal tax credit is presently available for heat pump installations made between 2023 and 2032.

• Federal Rebates for Heat Pumps

Another way that you can save money on your heat pump installation is with a federal rebate through the Department of Energy's High-Efficiency Electric Home Rebate Act. This program is designed to refund homeowners who make an effort to purchase energy efficient appliances, heat pumps included. Through this program, you can receive a rebate of up to $8,000. The total amount you stand to earn back depends on your household income. Households that earn under 80% of the median income for their area can have their entire purchase refunded, provided it costs less than $8,000. Households above this percentage can still have up to 50% of their heat pump purchase refunded through the rebate program.

• Montana State Tax Credits for Heat Pumps

There are a few different tax credit programs offered in the state of Montana that may help you receive a tax credit for your heat pump installation. The Montana Energy Conservation and Installation Tax Credit allows local homeowners to earn a credit for up to 25% of their expenses - maximum of $500 - for purchasing an energy conserving system such as a heat pump. Also available in Montana is the ​​Alternative Energy System Credit, which offers tax credits to homeowners who install heat pumps and other HVAC systems that don't rely on fossil fuels. This credit caps at $500 for a single individual and $1,000 for a married couple.

Professional Heat Pump Installation Company in Bozeman

At Monarch Heating and Cooling, we provide reliable heat pump installation services in the Bozeman area. Give us a call today if you're interested in having a heat pump installed and would like to learn more about financial incentives you can benefit from.