The 30 Percent Credit
25C gives you a credit of 30 percent of the cost to put in a heat pump. The cap is 2,000 dollars per year. That is real money back at tax time on a system that costs 8,000 to 15,000 dollars.
2026 Tax Credit Guide
The IRA 25C credit pays for heat pumps. In 2026 the credit is still active. Here is what Sacramento homeowners need to know.

Fresh Air Heating and Air has helped Sacramento homeowners pick heat pumps that qualify for tax credits since 2009. We advise on which units meet the IRS rules. We give free in-home estimates. Call (916) 416-8181 to talk through your options.
25C gives you a credit of 30 percent of the cost to put in a heat pump. The cap is 2,000 dollars per year. That is real money back at tax time on a system that costs 8,000 to 15,000 dollars.
Your heat pump must meet the top tier set by the CEE group. The unit must go in your main home, not a rental. Ask Fresh Air which models qualify before you buy.
Congress can change this credit. Install a qualifying unit in 2026 and claim it on your return. Check irs.gov for the latest rules before you file.
The IRA set 25C to run through 2032. In 2026 the credit is active. You get 30 percent of the cost, up to 2,000 dollars. The credit does not give a refund. If you owe 500 dollars in taxes, you get 500 back, not 2,000. You do not carry the rest to next year.
Congress can change this credit at any time. To get the benefit, install your heat pump in 2026 and file the credit on your 2026 tax return. Check irs.gov or ask your tax advisor to confirm the rules. Fresh Air tells you which units qualify so you do not lose savings on a bad pick.
Yes. The 25C credit runs through 2032. As of June 2026 it is active. Check irs.gov before you file because rules can change. Fresh Air installs units that now qualify.
Up to 2,000 dollars, or 30 percent of the installed cost. On an 8,000-dollar install that is 2,000 back. On a 5,000-dollar mini-split that is 1,500 back.
No. The 25C credit only covers your main home. A Tahoe cabin used part-time does not qualify. Ask your tax advisor for your own case.
You need an invoice showing the unit and labor costs and a maker cert that the unit meets the top tier rules. Fresh Air gives an itemized invoice at job end.
Call (916) 416-8181 or visit our contact page. Fresh Air is licensed CSLB number 945361 and has served Sacramento homes since 2009. We quote units that meet the current credit rules. We use milestone billing so you pay as work is done.