I got a heat pump last fall and my utility gave me a rebate, then my installer said I could also claim the federal tax credit. I did both, but now I’m kinda worried—was that actually allowed? Anyone else done this and had issues?
I did both, but now I’m kinda worried—was that actually allowed?
I get why you’re concerned. I had a similar question after installing mine last winter. The tricky part is that the federal tax credit (like the 25C) usually applies to what you actually *paid* out of pocket, not the sticker price. That means if you got a $1,000 utility rebate, you should subtract that from your total cost before figuring your tax credit. It’s not really “double dipping,” but it’s easy to miss this detail—my installer glossed over it too. I ended up amending my return after reading the IRS guidance more closely. It’s probably worth double-checking how you calculated yours just to be safe.