Rebates, Tax Credits & Incentives for Our Customers
Table of Contents – St Louis Tax Breaks & Rebates
- Ameren Missouri Heating & Cooling Program
- Ameren Missouri Natural Gas Rebate Program
- Cuivre River Customer Rebates
- Spire High-Efficiency Rebate – Laclede Gas
- Ameren Illinois Act On Energy & Rebates
- Geothermal Tax Credits – Reinstated
- Inflation Reduction Act Heat Pump Tax Credit
- Heat Pump Tax Credit 2023
- Tax Credits on Furnaces and Air Conditioners
- Heat Pump Rebates – How to Qualify
- Mass Save Heat Pump Rebate
- FAQs
- Helpful Heat Pump Resources
- Install a Heat Pump in St Louis
Ameren Missouri Heating & Cooling Program
Who: Ameren Missouri Electric Customers
When: Rebates valid for installs between January 1st -December 31st, 2023.
What:
Ameren Mo Electric Rebates 2023 – Residential Customers Rebate Chart for Replacement
Ameren Mo Electric Rebates 2023 – Distributor Channel Rebate Chart for Replacement
Ameren Missouri Natural Gas Rebate Program
Who: Ameren Missouri Gas Customers Only
When: Rebates valid September 1st, 2021 – February 28th, 2022
What:
Cuivre River Customer Rebates
Who: Cuivre River Customers
When: No End Date Specified
What: Rebates for Energy Efficiency
- Heat Pump Rebate Program: $750/ton Ground Source Heat Pump- qualifying new GSHP’s are eligible for $750/ton and replacement GSHP’s may be eligible for $150/ton
- Water Heater Rebate Program: $50 rebate for existing electric water heater with 90% + efficient standard electric water heater. (tankless water heaters are not included)
- Dual Fuel Heat Pump Rebate: $150/Ton Dual Fuel Heat Pump – air source heat pumps with supplemental gas or propane heat are eligible for $150/Ton
Where: Cuivre River Customers in Missouri 30% Federal Tax Credit- No Cap Geothermal- Government
Spire High-Efficiency Rebate – Laclede Gas
Who: Spire Customers
When: No End date listed as of now
What: Owners of, or customers living in, an individually metered dwelling unit, are eligible to participate in this program and must apply for rebates through the Company or through participating heating, ventilation, and air conditioning (“HVAC”) contractors. Individual dwelling units, as determined by account number, whether owner-occupied or rental property, are eligible for a maximum of two heating system rebates
Ameren Illinois Act On Energy – Standard Unit Qualifications
Who: Ameren IL Residential Electrical Customers building a new home or replace an existing system.
When: No end date as of now
What: Air Source Electric Heat Pumps. See Product Qualifications below
Where: Ameren Illinois Residents
Ameren IL Rebates:
ALSO SEE: Crescent Parts & Equipment Rebates
Geothermal Tax Credits – Reinstated
Who: Anyone who installs a Geothermal Heating & Cooling System in their home.
When: Geothermal system placed in service from 1/1/22 through 12/31/32.
What: The tax credit is 30% of the cost of the system.
LEARN MORE: Geothermal Tax Credits
Heat Pump Tax Credits & Rebates Throughout St Louis Area
If you’re considering installing a new heating system, looking at the potential tax credits and rebates for installing a more energy-efficient system like a heat pump is important. Not only are heat pumps quiet and eco-friendly, they now come with significant financial incentives.
Inflation Reduction Act Heat Pump Tax Credit
Resources for Heat Pump Incentives
In early 2023, the U.S. government passed the Inflation Reduction Act [1], which includes new tax credits and rebates for homeowners upgrading to more energy-efficient heat pumps for space and water heating. Thanks to these incentives, installing a heat pump with Hoffmann Brothers is more affordable than ever. We’ll tell you everything you need to know about the new heat pump incentives.
Mitsubishi IRA 25C Tax Credit Qualified ProductsUnder the Inflation Reduction Act of 2022, federal income tax credits for energy efficiency home improvements will be available through 2032. – Energy Star
Heat Pump Tax Credit 2023
On January 1st, 2023, a new tax credit for heat pumps went into effect. When you install an energy-efficient heat pump in your home, you’ll be eligible to receive a tax credit of up to 30% of the total cost of the equipment and installation up to $2,000. When filing your taxes the following year after installation, you can deduct the credit.
Am I Eligible for the Tax Credits for Heat Pumps?
Your eligibility for the heat pump tax credit is contingent on the following:
- The new heat pump must be in the highest efficiency tier. For split-ducted and packaged systems, it must have a seasonal energy efficiency rating (SEER) of at least 15.2 and a heating seasonal performance factor (HSPF) of at least 8.1. For ductless systems, it must have a SEER of at least 16 and an HSPF of at least 9.5.
- The new heat pump must be more energy efficient than your old unit, meaning if you already have a heat pump in the highest efficiency tier, you won’t be eligible for the tax credit. You will be eligible if you’re upgrading from a furnace or lower-efficiency heat pump.
The 30% tax credit of up to $2,000 is also available for heat pump water heaters that meet specific energy efficiency requirements. Additionally, the program provides another tax credit of up to $600 to help cover the costs of any electrical upgrades needed to install the heat pump space heater or water heater.
If you’re upgrading from a furnace to a heat pump, this will help offset the cost of electrical upgrades. However, the overall total limit for an energy-efficiency tax credit in one year is $3,200.
Tax Credits on Furnaces and AC Systems
If a heat pump isn’t the right choice for your home, new tax credits are available for homeowners who install a more energy-efficient furnace or air conditioner.
You could receive the following:
- A $600 tax credit when you install a gas furnace with an Annual Fuel Utilization Efficiency (AFUE) of 97 or more.
- A $600 tax credit when you install a split-ducted or ductless air conditioner with a SEER of at least 16 or a packaged air conditioner with a seer of at least 15.2.
Heat Pump Rebates – How to Qualify
The U.S. Department of Energy has reserved $4.5 billion for home energy improvement projects, including point-of-sale heat pump rebates [2].
If you’re looking to install a heat pump space heater in your home in the St. Louis area, you could receive a rebate of up to $8,000. If you install a heat pump water heater, you could receive up to $1,750. This rebate program will likely start in mid-2023 and end in September 2031. However, it could end sooner if the federal funding runs out.
Heat Pump Rebates & Household Income
The amount of your rebate depends on your household income as follows:
- If your household income is less than 80% of the local median income in your area, you’re eligible for a 100% rebate of up to $8,000.
- If your household income is between 80% and 100% of the local median income in your area, you’re eligible for a 50% rebate up to the same limits. In other words, you would have to spend $16,000 in heat pump installation to claim the capped amount of $8,000.
- If your household income is above 150% of the local median income in your area, you aren’t eligible to receive a rebate.
Mass Save Heat Pump Rebate
The Mass Save Heat Pump Rebate is only eligible for heat pumps with a SEER of at least 15.2 and a minimum HSPF that depends on the system you install [3]. One of our HVAC Project Managers will help you determine what model of equipment to install to be eligible for a rebate.
FAQs About Heat Pump Incentives in St Louis, MO
You can claim your heat pump tax credit when you file your federal income tax return the year after installation. If you have a tax preparer, make them aware of the credit and they will fill out the necessary form. If you use a program like TurboTax, it should guide you through claiming relevant energy tax credits.
The Department of Energy (DOE) will likely issue state guidelines for heat pump rebates in spring 2023 and begin funding. The DOE and the states of Missouri and Illinois will likely work together to design a program that makes rebates accessible at the point of sale, so homeowners only need to cover the remaining out-of-pocket cost.
For split-ducted and packaged units, your system must have a SEER of at least 15.2 and an HSPF of at least 8.1. For ductless systems, it must have a SEER of at least 16 and an HSPF of at least 9.5.
Install a Heat Pump in St Louis, MO
If you’re considering installing a new heating system and want to take advantage of these heat pump incentives, Hoffmann Brothers can help you choose a system that fits your home’s needs and satisfies the requirements for a heat pump tax credit and rebate. We install heat pump systems like geothermal heat pumps and ductless heat pump systems that are quieter and more energy-efficient than furnaces. When factoring in long-term energy savings, tax credits, and rebates, a heat pump is a great option to consider.
Heat Pump Services from Hoffmann Brothers
Our team has installed thousands of heat pumps throughout the St. Louis area, and our HVAC professionals are licensed and trained to get the job done right. Request an estimate or call Hoffmann Brothers today at 314-664-3011 to get started on your heat pump installation!