If you’ve been following along, you already know that we believe deeply that the path to a sustainable future is paved with many individual actions–we all get to choose how we spend our money, and those choices can impact climate progress. We also get to choose where we invest it. That’s why we’re thrilled to introduce our partnership with Walden Mutual Bank. Choosing to work with Walden was easy, because the overlap of our missions is so natural. We both stand on the common ground that individual choices have the power to drive significant collective change.
Curious about banking with Walden? Read on for a special opportunity to sign up for an individual account!
Why Walden Mutual? A Line of Credit for the Planet
In need of working capital, we found a mission-aligned partner in Walden Mutual. Their understanding and support of our vision made them the ideal lender for us. Support from Walden marks a significant step in Elephant’s journey, and will enable us to confidently pursue our next phase of growth.
To understand why Walden’s philosophy is so unique, it’s important to first understand what a mutual bank is! Put simply, it’s a financial institution that’s owned by its own depositors (everyday people, like you and me) rather than shareholders, which in turn allows the bank to focus on serving the needs of its members and local community. So, while corporate banks continue to invest deposits in unsavory segments like the fossil fuel industry, Walden only lends to 100% mission-aligned borrowers with a focus on farms, local food businesses, nonprofits, and other sustainable businesses (like us!). For context, the concept of a Mutual Bank model isn’t new – but it has also become increasingly uncommon. When Walden Mutual opened its doors in 2023, it was the first of its kind in almost 50 years.
A Partnership with Perks
Ready to reexamine where your money is being put to work? Opening an account with Walden may be for you. If you decide to open an account with Walden Mutual and use promo code ELEPHANT by May 31st, 2024, you’ll receive a $100 credit to spend at a range of Walden’s partner businesses, including right here at Elephant Energy.
Importantly, with Walden Mutual, your savings stretch much further than simply earning interest. They become an actionable tool for change when they are invested in renewable energy projects, sustainable agriculture, and local communities. Have questions? Check out Walden’s offerings here.
Join Us
At Elephant, a key part of our mission is empowering homeowners to take personal climate action – knowing that the impact of that action spans so much further than the four walls of our own homes. Choosing to bank with Walden Mutual is another one of those choices–a choice that we have made, too. Using your savings not only to earn dividends, but also fund a more sustainable future, sounds like a win-win to us.
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Eager to make more climate-friendly choices? Check out our tool, Your Electrification Roadmap®. A few simple questions will get you a personalized plan for a sustainable home. Together, we can make choices that truly make a difference.
Valentine’s Day is a time of public declarations – when even those of us that typically refrain from PDA find the courage to tell the world, “hey, just in case it wasn’t clear, I really love this person!”. This can take many shapes and forms–engagement, marriage–and even the “hard launch”, which often happens on our social media feeds.
We’re here with a hot take: if you have a heat pump, it’s time to hard launch your relationship with it this Valentine’s Day.
Why? Well, put simply, personal climate action is contagious – in a good way! Research on solar panel adoption (replicated many times, in many geographies) shows that the biggest predictor of whether you will purchase solar panels is whether your neighbor has already done so! Why? As Katherine Hayhoe so eloquently explains, this lowers “the ‘cost’ of information”.Knowing that you can go down the street and ask who installed the equipment and how it went is, well, comforting.
This isn’t the only research that underscores the importance of social proof when it comes to home electrification, though. A study recently published in the journal Energy Policy abouthousehold energy decision-making and technology adoption in the U.S. found that the top two information sources homeowners sought after during their consideration process were (1) their own friends and family (~42% survey respondents), and (2) online reviews (~36% of survey respondents).
Here’s the tricky thing about heat pumps and heat pump water heaters though, though. These HVAC systems are hidden away in our basements, utility closets, and backyards – entirely out of sight from the neighbors, typically. Remember the old conundrum, “If a tree falls in a forest and no one is around to hear it does it even make a sound?” Feels pretty relevant here!
The point is, taking a public stand for personal climate action can dramatically accelerate the pace of progress in your orbit. By taking a few minutes to “hard launch” your home electrification efforts, you have the opportunity to create a ripple effect of decarbonization far beyond the four walls of your own home.
How to “Hard Launch” your heat pump (on social)
Social media is a great place to share your story! We created these love notes to make it easy. What is an example of a hard launched relationship? Sending ’em a Valentine, of course!
How to Hard Launch your heat pump without social media
No social media? No problem! When should you hard launch a relationship? Well, we’re taking advice from our friends at VeryWellMind on hard launching your relationship without social media, and translating that to heat pumps.
Send a group text to your friends or family members. This can include the name and a photo of your partner. Yes this works great! “Heat Pump” has entered the chat.
Call your friends and family individually to discuss your relationship. Another strong option – share your reasons for why you went electric in a good ol’ fashioned phone call
Bring your partner out with you to meet your friends. Ehh, this one’s a little trickier…but snapping a selfie with your heat pump to share with friends might just do the trick!
Take your partner home to meet your family. This one’s even harder. Then again, dropping off information about a heat pump might be the move
Plan a gathering at which you’ll introduce your new partner to your social circle. This one is a gem! Throw a “meet my heat pump” party (and be sure to send us photos)!
So yes, make the cheesy post about your partner (seriously, always make the cheesy post), but don’t forget to also affirm your commitment to a cause that also needs your support now more than ever – the climate.
— Ready to get started? Join us in building a brighter future by electrifying everything, starting with homes. Your choice today shapes our collective tomorrow!
If you’re considering a heat pump, the 2024 Federal Heat Pump Tax Credit can make it more affordable. This credit is part of the 25C Energy Efficient Home Improvement Credit, expanded under the Inflation Reduction Act. Homeowners can claim 30% of the cost, up to $2,000 per year, on qualifying heat pumps, heat pump water heaters, and related electrical upgrades.
This guide covers everything you need to know about how the federal heat pump tax credit works, who qualifies, and how to claim it.
What Is the Federal Tax Credit for Installing a Heat Pump?
The Federal Heat Pump Tax Credit is part of the 25C Energy Efficient Home Improvement Credit, expanded under the Inflation Reduction Act. It helps make energy-efficient upgrades more affordable by covering 30% of the total cost, up to $2,000 per year, for qualifying heat pumps and heat pump water heaters.
How It Works
This is a non-refundable tax credit, which means it directly reduces the amount of federal income tax you owe but won’t result in a refund. If the credit amount is more than what you owe, you can apply the excess credit to future tax years. This lets you maximize the benefit even if your tax liability is lower than the credit amount.
What’s Covered Under the 2024 Federal Heat Pump Tax Credit?
The 2024 Federal Heat Pump Tax Credit helps offset the cost of energy-efficient upgrades by covering a portion of your expenses. You can claim:
30% of the total cost, up to $2,000 per year for air-source heat pumps and heat pump water heaters
$600 for electrical panel upgrades installed with a heat pump
$1,200 per year for other qualifying energy-efficient improvements, such as insulation and air sealing
For example, if you spend $7,000 on a qualifying heat pump installation, you can claim 30% of that cost, or $2,000, the annual cap. If you owe $3,000 in federal taxes, your tax bill would be reduced to $1,000 after applying the credit.
Heat Pump Federal Tax Credit Requirements
To be eligible for the 2024 Federal Heat Pump Tax Credit, you must meet the following requirements:
1. Property Requirements
The heat pump must be installed in an existing home and your primary residence in the U.S.
New construction and rental properties do not qualify.
Eligible properties include:
Single-family homes
Condominiums
Mobile homes and manufactured homes
Houseboats
Cooperative apartments
2. Efficiency Requirements
The heat pump must meet the highest efficiency standards set by the Consortium for Energy Efficiency (CEE), including:
A minimum SEER2 rating of 16 or higher
Compliance with the CEE’s highest efficiency tier for air-source heat pumps or heat pump water heaters
3. Business Use of Home
If you use part of your home for business, you can still claim the credit, but it will be prorated based on non-business use:
Up to 20% business use: You can claim the full credit
More than 20% business use: The credit is proportional to your non-business use
4. Timing and Installation Requirements
The heat pump must be installed and operational by December 31, 2024
You must claim the credit in the same tax year the installation is completed
Ready to Upgrade to a Heat Pump?Find out how energy-efficient heating and cooling can lower your energy bills. Learn more about Elephant Energy’s Heat Pump Solutions and see which high-efficiency system is right for your home.
How to Get Federal Tax Credit for Heat Pumps: Claim and Filing
Here’s how to get the federal tax credit for heat pump installations:
Step-by-Step Filing Guide:
Collect Your Documentation:
Save your invoices and receipts showing the total cost of the heat pump installation.
Get a manufacturer certification statement to prove your system meets the required efficiency standards.
Fill Out Personal Information: Enter your Name, Social Security Number, and Main Home’s Address at the top of the form.
PART I: Residential Clean Energy Credit: This section is for solar, wind energy, geothermal heat pumps, or battery storage. Skip this if you’re only claiming the heat pump credit.
PART II: Energy Efficient Home Improvement Credit: This is where you’ll claim the heat pump tax credit, as well as credits for weatherization, electrical panel upgrades, and home energy audits.
Continue filling out lines 17 through 32 in Part II.
Section A: Qualified Energy Efficiency Improvements
In Line 18, enter the total invoice amount for insulation and air sealing.
Section B: Residential Energy Property Expenditures
In Line 25ab, enter the total invoice amount for electrical panel upgrades.
In Line 29abc, enter the total invoice amount for heat pumps and/or heat pump water heaters.
Integration with Form 1040:
Add the relevant tax credit details from Form 5695 to your standard Form 1040 when filing your federal taxes. This ensures the credit is accurately applied to your tax bill.
Submission Reminder:
Attach Form 5695 to your federal tax return (Form 1040) when filing. This is required to claim the credit.
Keep Your Records:
Hold onto all documentation, including invoices and certification statements, for at least three years in case of an IRS audit.
Additional Energy Efficiency Tax Credits
In addition to the heat pump tax credit, the 25C Energy Efficient Home Improvement Credit covers other energy efficiency upgrades. Pairing these improvements with a heat pump installation helps you maximize your savings while enhancing your home’s overall energy efficiency.
Home Energy Audits
You can also get a tax credit of up to $150 for a home energy audit conducted on your primary residence. To qualify, the audit must:
Include a written report and inspection that identifies the most significant and cost-effective energy efficiency improvements, along with estimates of potential energy and cost savings.
Be conducted by a certified home energy auditor to ensure accuracy and credibility.
Pairing a home energy audit with a heat pump installation helps you identify additional energy-saving opportunities, maximizing your overall savings.
Energy Efficiency Upgrades
The 2024 Federal Heat Pump Tax Credit is part of the 25C Energy Efficient Home Improvement Credit, which also covers other energy efficiency upgrades. You can claim 30% of the project cost, up to $1,200 per year, for qualifying improvements, including:
Attic Insulation
Basement or Crawlspace Insulation
Pairing these upgrades with a heat pump installation helps you maximize your savings while improving your home’s overall energy efficiency.
Ready to Upgrade Your Home’s Comfort and Efficiency? Start your journey to lower energy bills and a more comfortable home. Get an Instant Quote for Heat Pump Installation from Elephant Energy and see how much you could save with a high-efficiency system.
Additional Resources: Rebates and Tax Credits Directory
Looking to maximize your savings? The following will take you to relevant Elephant Energy resources that explain how to make the most of available financial incentives, including rebates and tax credits:
Mass Save® Rebates: See how homeowners in Massachusetts can benefit from exclusive heat pump rebates through the Mass Save® program.
Why Choose Elephant Energy?
Upgrading to a heat pump is a smart way to lower your energy bills, reduce your carbon footprint, and take advantage of the 2024 Federal Heat Pump Tax Credit. With the right system, you can get money back at tax time while making your home more comfortable and energy-efficient.
Elephant Energy makes the process simple and stress-free. Our team handles every detail, from helping you choose the right heat pump to guiding you through every rebate and tax credit available.
Ready to maximize your savings?Get an instant estimate to upgrade your home and invest in a more sustainable future.
Frequently Asked Questions
Can I combine this tax credit with other incentives?
Yes, you can combine the federal tax credit with state rebates or utility incentives. The federal credit is calculated based on your out-of-pocket costs after other rebates are applied, letting you maximize your savings.
Can I claim this credit if I received a state rebate?
Yes, but the federal tax credit will be calculated on your costs after the state rebate is applied. This means you’ll get credit for what you actually spent out of pocket.
Do rental properties qualify if I live there part-time?
No, rental properties do not qualify, even if you live there part-time. To get this credit, the heat pump must be installed in your primary residence.
What if I don’t owe enough in taxes to use the full credit this year?
This is a non-refundable credit, so it can only reduce your tax bill to zero, not below. However, you can use your unused credit for future tax years to make the most of the credit.
Disclaimer:
This guide is for informational purposes only and should not be considered tax advice. Individual tax situations can vary, so it’s recommended to consult a licensed tax professional for personalized guidance. Elephant Energy does not assume liability for your specific tax circumstances.
Congratulations on surviving the holidays with your in-laws and diving head first into your New Year’s resolutions! Is upgrading to a climate-friendly home on that list? Here’s a friendly yet firm nudge: 2024 is not just another year, it’s a crucial time to consider upgrading to a heat pump or heat pump water heater.
Why the rush? Well, it’s not only about enjoying a cozier home and smarter savings on your bills. We’re racing against time for the planet. The clock is ticking towards 2030, a year earmarked by experts as critical for reducing global carbon emissions. Every heat pump installed is a step towards that goal. Sticking with that old furnace or unreliable water heater? That’s not just a hassle waiting to happen; it’s a missed opportunity to join the fight against climate change. So, why not kick off the year by making your home more efficient and comfortable? What’s the best time of year to buy a heat pump? Don’t wait – the time is now!
1. Accelerating the Tipping Point: Every Installation Counts
What is the future of heat pumps? Well, we are approaching a critical tipping point in heat pump adoption. Every installation is a significant contribution, providing essential social proof that accelerates the transition to green energy. By installing a heat pump now, you’re not only taking a personal stand against climate change but also inspiring confidence in others to join this growing movement. Your action today is a powerful catalyst in this critical journey.
2. The Slow Rebate Rollout: A Call to Act Now
While the Inflation Reduction Act offers the promise of direct-pay rebates, its slow implementation—with only a few states expected to roll out rebates this year—suggests that waiting may not be the best strategy. If you’re in a position to install a heat pump without relying on these incentives, it’s prudent to proceed. Waiting could mean missing out on immediate benefits and potentially facing uncertainties regarding rebate qualifications.
3. A Singular Opportunity for Long-Term Impact
Choosing your next HVAC system is a once in every two decades decision. Opting for a heat pump now avoids the risk of being forced to select a less sustainable option in an emergency. A proactive choice today ensures that you are not contributing to another two decades of emissions. At what age should a heat pump be replaced? When well-kept, you can expect 15+ years out of your heat pump.
4. Stay Ahead of the Demand Curve
Demand for heat pumps is expected to surge, especially once rebates do become more widely available. As we’ve seen happen before, this increase in demand will likely lead to higher prices and longer installation wait times. By acting now, you avoid these pitfalls, start saving on energy costs immediately, and contribute to stabilizing market demand.
5. Influence Your Community: Share Your Climate Journey
Installing a heat pump gives you a unique opportunity to influence your community. Rather than boasting, use this chance to share your experience upgrading to a climate-friendly home. Your story can (and will!) inspire others to make similar choices, creating a ripple effect of positive environmental impact. Send us an email at hello@elephantenergy.com – we’d love to share your story.
Conclusion: The Time to Act is Now
In 2024, the message is clear: waiting comes with a cost, too. Installing a heat pump is a critical step towards a sustainable future. It’s a decision that benefits you, your community, and the planet. If you’re able to install a heat pump this year, don’t wait for a ‘better time’ or more incentives – the time to act is now.
Ready to get started? Join us in building a brighter future by electrifying everything, starting with homes. Your choice today shapes our collective tomorrow!
WHEW, we made it. The home stretch, the last chapter, the grand finale—whatever you want to call it. It’s our seventh and final post in our climate-friendly home series. In this final edition, we’re sharing a roundup of all our favorite resources to help make your climate-friendly journey as simple as possible. Read on for a whole host of helpful guides, databases, toolkits, and more—and drop us a line if you think there’s something we should add.
Still looking for a resource to help you determine where to start your climate-friendly home journey? Look no further than Elephant’s tool, Your Electrification Roadmap®. By answering some simple questions and providing a few key details about your goals and preferences, you can get a personalized plan to simplify your journey to home electrification.
