Heat Pump Water Heater Incentive Stack

Stack IRA-era incentives in one view. Enter your project cost, layer on state and utility rebates, cap the federal credit by available tax liability, and translate the post-incentive bill into a simple payback backed by expected energy savings.

Turnkey project price including equipment, labor, and permitting.
Percent credit available under IRS Section 25C for qualifying heat pump water heaters.
Stackable rebate amount from state or municipal programs.
Cash rebate or bill credit from your utility for installing high-efficiency equipment.
Defaults to the post-rebate cost. Enter lower tax liability to cap how much credit you can claim this year.
Defaults to $0. Enter expected utility bill savings to compute a simple payback period.

Incentive rules change frequently. Confirm eligibility, funding availability, and tax carry-forward options before purchasing equipment.

Examples

  • $3,800 install, 30% federal credit, $800 state rebate, $400 utility rebate, $2,800 tax liability, $320 annual savings ⇒ State/local rebates $800.00 USD • Utility rebate $400.00 USD • Federal tax credit $780.00 USD • Credit-eligible basis after rebates $2,600.00 USD • Total incentives $1,980.00 USD • Net upfront cost $1,820.00 USD • Gross reduction $1,980.00 USD • Simple payback 5.7 years.
  • $4,600 install, 30% credit, $1,200 state rebate, $0 utility rebate, $900 tax liability, no savings entered ⇒ Credit limited by tax liability. State/local rebates $1,200.00 USD • Utility rebate $0.00 USD • Federal tax credit $900.00 USD • Credit-eligible basis after rebates $3,400.00 USD • Total incentives $2,100.00 USD • Net upfront cost $2,500.00 USD • Gross reduction $2,100.00 USD • Enter annual savings to estimate a simple payback.

FAQ

Can I include contractor discounts?

Yes. Subtract the discount from the installed cost before running the calculator so incentives apply to the negotiated price.

What if the utility rebate is paid post-install?

Enter it anyway—it still reduces your net cost even if the payment arrives later. The calculator assumes you eventually receive the rebate in full.

How do performance-based incentives factor in?

Treat them as additional annual energy savings by converting the performance payment to a yearly dollar value and adding it to the savings field.

Can I model multiple tax years?

Run the calculator twice—once with the current-year tax liability and once with expected carryforward absorption—to understand when the full credit will be realized.

Additional Information

  • Federal 25C credits apply to the post-rebate project cost, so stacking rebates trims both cash cost and the credit base.
  • Tax liability determines how much credit you can absorb in the current year; excess may roll forward subject to IRS rules.
  • Utility rebates reduce the invoice upfront, which shortens the cash payback even before the tax credit arrives.
  • Entering annual energy savings converts the net cost into a simple payback metric to support go/no-go decisions.
  • Revisit the calculator as state programs refresh funding or as equipment quotes change to keep your incentive stack current.

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