Summary
A federal tax credit of up to US$2,000 for installing a qualifying heat‑pump water heater is set to expire on December 31, 2025. This incentive, part of the Inflation Reduction Act, covers 30% of installation costs for eligible ENERGY STAR–certified units. To claim it, homeowners must have the heat pump installed before year-end and submit their application when filing their tax return. With this deadline approaching, advocates urge quick action. These efficient water heaters not only cut energy bills but also reduce carbon emissions—making now the time to invest.
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