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Heat Pumps

Federal Tax Credits

IRA tax credit 25C provides:

• 30% percent of your total cost for heat pump or heat pump water heater projects, up to $2,000

You can claim these credits for different projects every year.

File form 5695 with your tax return

Maine Incentives

Efficiency Maine rebates:

• $400 – $2,400 for heat pumps, based on income
• Variable rebates for heat pump water heaters

See Efficiency Maine for details

Weatherization Upgrades

Federal Tax Credits

IRA tax credit 25C provides:

• 30% of of your total cost, up to $1,200, for weatherization and building performance projects such as:
  • insulation and air sealing
  • door upgrades
  • window upgrades
  • energy audits

Visit EnergyStar.gov for a full list of eligible projects.

File form 5695 with your tax return

Maine Incentives

Efficiency Maine rebates:

• Up to $4,000 – $8,000, based on income, for insulation
• $500 - $600 for air sealing

Rooftop Solar, Geothermal & Battery Storage

Federal Tax Credits

IRA tax credit 25D  provides:

• 30% of all costs for rooftop solar, or investment in community solar
• 30% of all costs for geothermal heating
• 30% of all costs for battery storage

There is no cap on these projects.

File form 5695 with your tax return

Maine Incentives

Efficiency Maine rebates:

• $3,000 for qualifying home geothermal systems

Electrical Panel Upgrade

Federal Incentives

IRA tax credits 25C and 25D both provide for electrical panel upgrades in conjunction with a heat pump or a solar installation:

• 30% tax credit up to $600 per year in conjunction with a heat pump
• 30% tax credit uncapped, in conjunction with rooftop solar

If both tax credits are applicable to your upgrades, choose the one that saves you the most money.

File form 5695 with your tax return