US Heat Pump Costs Set to Rise as Federal Incentives Expire
- brg_news_room
- Dec 23, 2025
- 1 min read
UNITED STATES: US homeowners face higher heat pump installation costs as the Energy Efficient Home Improvement Credit ends on December 31. Under the program, households could claim up to $3,200 annually, including up to $2,000 for qualifying heat pumps, covering 30% of eligible costs. From January 2026, new installations will no longer qualify, removing a key mechanism that helped offset upfront costs and reduce long-term heating expenses.
The credit applied only to existing primary residences, excluding new construction, rental properties, and most home-based businesses. While there was no lifetime cap, annual limits made project timing critical, especially for phased upgrades. With the incentive expiring, homeowners planning heat pump installations in 2026 and beyond are expected to face higher effective prices, potentially slowing adoption as federal support for residential electrification narrows.
Source: SlashGear
