Can I get a tax credit for my new heat pump?

For many families, there usually seems to be a long list of home improvement tasks that they would like to get done or new ideas they’d like to attempt. While several may not be required, purchasing a new heat pump is an example of a task that could be critical to keeping your house comfortable during the colder months in Payson.

Selecting a new heat pump is a big investment. You’ll definitely feel the return-on-investment on your indoor comfort in addition to your utility costs, but it might be a bit daunting at first. The good news is that when you purchase a new energy-efficient heat pump, you may be approved for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were extended through December 31, 2020. In order to get the tax credit, you must purchase a heat pump that has earned the ENERGY STAR label. When browsing for heat pumps, keep an eye out for products with the ENERGY STAR rating so you can be confident you’re getting a high-efficiency heat pump.

At North Mechanical Heating and Cooling, our team will help you choose a solution that meets your needs and makes sure you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you should confirm the heat pump you pick has the following requirements.

For Split Systems:

  • Heating Seasonal Performance Factor (HSPF): 8.5 or higher
  • Energy Efficiency Ratio (EER): 12.5 or higher
  • Seasonal Energy Efficiency Ratio (SEER): 15 or higher


For Package Systems:

  • HSPF: 8 or higher
  • EER: 12 or higher
  • SEER: 14 or higher


This tax credit is not going to be the only savings you’ll observe when you select a new high-efficiency heat pump. Many of the most efficient heat pumps can save you hundreds of dollars on your energy bills throughout the year. And you’ll also have greater confidence in your HVAC system to help your home stay at just the right temperature.

If you think of questions concerning your eligibility for a tax credit, or if there are additional local savings you might be eligible for by getting a new high-efficiency heat pump, give our experts at North Mechanical Heating and Cooling a call at 928-263-8570. You may also visit ENERGY STAR or reach out to your local utility establishment if you have questions about other eligible home products.

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