Act Fast: Inflation Reduction Act Heat Pump Incentives Are Limited – Join Evergreen’s Alert List Today

Washington homeowners have a unique opportunity coming this fall. Starting in Fall 2025, the Inflation Reduction Act (IRA) Home Energy Incentives will launch in Washington, offering thousands of dollars to help low- and moderate-income households upgrade to high-efficiency heat pumps and other energy-saving improvements.

These incentives are limited and first-come, first-served. Once funds are claimed, they’re gone. That’s why Evergreen, already an approved Qualified Contractor Network (QCN) member, is building an early alert list. By joining today, you’ll be first in line when applications open, giving you the best chance to secure your incentives.

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What Households Can Expect

HARP – Appliance Incentives

For households making up to 150% of Area Median Income (AMI):

• Low-income (≤80% AMI) → Up to $14,000 total, covering 100% of project costs.
• Moderate-income (80–150% AMI) → Up to $7,000 total, covering 50% of project costs.

Equipment-specific maximums (within those totals):

• Heat pump for space heating/cooling → $8,000
• Heat pump water heater → $1,750
• Electric stove/cooktop/range/oven → $840
• Heat pump clothes dryer → $840
• Insulation, air sealing, ventilation → $1,600
• Electrical wiring → $2,500
• Electrical panel upgrade → $4,000

HOMES – Whole-Home Efficiency Incentives

For households making up to 150% of AMI:

• Low-income (≤80% AMI)
  • 20–34% energy savings → Up to $15,000 or 100% of project cost
  • ≥35% savings → Up to $20,000 or 100% of project cost
• Moderate-income (80–150% AMI)
  • 20–34% savings → Up to $2,000 or 50% of project cost
  • ≥35% savings → Up to $4,000 or 50% of project cost

Other Incentives That Can Be Stacked with the Inflation Reduction Act

In addition to the new Inflation Reduction Act programs, Evergreen can also help you take advantage of:

• Federal Energy Tax Credits (25C) → A 30% tax credit, up to $2,000, for qualifying heat pumps. This credit is currently set to expire at the end of 2025, so acting soon ensures you can capture this additional savings. (Unlike rebates, this benefit is applied when you file your taxes, not instantly at purchase.)
• Utility Rebates → Many local utilities in Washington offer their own rebates for heat pumps, water heaters, and efficiency upgrades. These are instant rebates, meaning they come directly off your invoice at the time of purchase.
• City of Seattle Oil-to-Heat Pump Incentive → Up to $6,000 for switching from an oil furnace to a high-efficiency heat pump. This is also an instant rebate applied at the time of purchase.
• Midstream Rebates → Incentives offered through distributors or manufacturers but passed directly to the customer as an instant rebate, reducing your invoice by up to $600.
• Manufacturer Rebates → Seasonal or promotional rebates directly from equipment manufacturers, often up to $1,200 for qualifying systems. These are also treated as instant rebates that reduce your upfront cost.

Evergreen’s team will make sure you’re not leaving any money on the table.

Payment Plans for the Remaining Cost

For moderate-income households, IRA incentives can cover up to 50% of project costs—but that still leaves a balance to fund. To make upgrades affordable, Evergreen offers long-term payment plan options, including 0% interest plans through Wells Fargo and Synchrony, so you can spread out the cost into manageable monthly payments.

Pairing incentives with financing means you can:

• Cover the upfront gap without financial stress.
• Take advantage of funding while it lasts.
• Enjoy the comfort and efficiency of a new heat pump immediately.

Frequently Asked Questions

Am I eligible?
Homeowners, renters, and multifamily property owners can apply as long as household income is at or below 150% of Area Median Income (AMI). This is determined by the county you live in, as well as your household size. To view the income thresholds in in your county, visit this link to the Washington 2025 AMI Thresholds: https://deptofcommerce.app.box.com/s/6f9frs2xox2mfypr1vg5jwqs903luqtu.

How much can I save?

• Low-income households (≤80% AMI) may have up to 100% of project costs covered, with incentives as high as $14,000 under HARP and $20,000 under HOMES.
• Moderate-income households (80–150% AMI) can receive incentives covering 50% of project costs, with totals up to $7,000 under HARP and $4,000 under HOMES.
• A high-efficiency heat pump system will likely save you hundreds per year in operating costs, depending on your home’s current heating system.
• On top of Inflation Reduction Act incentives, additional savings may include:
  • Federal Tax Credit (25C) → Up to $2,000 (available through the end of 2025; applied at tax time).
  • City of Seattle Oil-to-Heat Pump Incentive → Up to $6,000, applied instantly if switching from oil.
  • Utility Rebates → Vary by utility, applied instantly at purchase.
  • Midstream Rebates → Up to $600, passed directly to you as an instant rebate.
  • Manufacturer Rebates → Up to $1,200, often seasonal or promotional, also applied instantly.

With Evergreen guiding you, these incentives can often be stacked together, dramatically reducing the upfront cost of installing a heat pump.

What equipment is covered under HARP?
ENERGY STAR heat pumps, heat pump water heaters, electric stoves, heat pump clothes dryers, electrical panel upgrades, wiring, insulation, and air sealing.

What upgrades qualify under HOMES?
HOMES is based on overall energy savings from home retrofits, not specific appliances. An energy audit is required, and incentives are tied to achieving 20% or more reduction in energy use.

Can I qualify for both HARP and HOMES?
Yes — in many cases, homeowners may qualify for both programs, as long as the incentives apply to different measures.

For example:

• Use HARP to get up to $3,500 off a new ENERGY STAR heat pump.
• At the same time, if your whole-home project (like insulation and air sealing) reduces energy use by at least 20%, you may also qualify for HOMES incentives of up to $2,000–$4,000 (for moderate-income households) or even higher for low-income households.

Evergreen will help design projects strategically so you can maximize your opportunities.

Take the First Step Today

Evergreen has been helping Washington families stay comfortable for over 50 years, and we’re proud to be part of this historic program.

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We’ll notify you the moment incentives become available and help you apply quickly, giving you the best chance to take advantage of this unprecedented opportunity.