$300 Federal Tax Credit for Heat Pumps

It’s not too late to claim your $300 tax credit if you installed an air source heat pump in 2021!

IRS form 5695 is the one you’re after. Look down to line 22A on page 2 of the form for the proper place to write in $300. Full form instructions and a link to both forms can be found on our website’s ‘Financing and Incentives‘ page under the ‘For Home’ menu tab. The first and second links under ‘Grants, Tax Credits, and Other Incentives’ will take you to the proper IRS page where you can download both forms.

If you are one of the many who now file online with Turbo Tax, here is a page with detailed instructions on how to enter the $300 credit when filing.


  1. I’m installing four heat pumps in 2022. One in my residence and three in rental units. Any ideas about tax credits in 2022? Thanks for all you are doing!!!!!

    1. Hi Linda! So great to hear what you’re planning! Four!! Are the rental unit pumps going into three different rentals? Do you include utilities in the rental cost? Plans to lower the monthly cost if utilities are included? It is our hope that we see the tax credit return in 2022 as a $600 credit. I’m not sure how that would work for the fact that you may have 4 different pumps. It may be able to be applied to each or just sit at a $600 credit. I think you’ll have to wait and see. Andy

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