2026 Heat Pump Tax Credits for Kentucky Homeowners

Heat pump installation has never had better upfront economics in Kentucky. Qualifying high-efficiency heat pumps may be eligible for federal tax credits up to $2,000 under the Inflation Reduction Act — and the equipment works efficiently in our mixed climate, especially in dual-fuel configurations.

Learn more about our heat pump installation services — we help Lexington-area homeowners navigate credits at quote time.

2026 credit basics

The Energy Efficient Home Improvement Credit (25C) provides up to $2,000 per year for qualifying heat pumps and heat pump water heaters. Credits apply to equipment and installation labor for eligible systems installed in your primary residence.

• Primary residence only — rental and second homes do not qualify
• Must meet IRS efficiency requirements for the tax year installed
• Credit is non-refundable; you need sufficient tax liability to use it
• Keep manufacturer certification and itemized invoice for your tax preparer
• Can combine with utility rebates where available in Central Kentucky

Who qualifies

Credits apply to qualifying equipment installed in your primary residence. We help you understand current programs at quote time — eligibility rules change, and we stay current so you don't leave money on the table.

Next steps for Lexington homeowners

A cold-climate heat pump paired with your existing gas furnace (dual-fuel) is often the best fit for Kentucky winters. Request a heat pump quote or explore financing to spread the upfront cost.