On August 7, 2024, the Department of Energy announced nearly $85 million across four heat pump manufacturers to accelerate the manufacturing of electric heat pumps. It will target five factories in New York, Tennessee, Texas, and Rhode Island. The funding is made available through IRA section 30001, which appropriated $500 million to DOE to carry out the expansion of domestic clean energy manufacturing of technologies, including heat pumps, through the Defense Production Act of 1950. This investment will further the buildup of a clean energy economy, create high-quality manufacturing jobs, help families and businesses save money on their energy bills, and bolster national security by reducing energy reliance on fossil fuels and foreign adversaries.
Consumers can also receive 30% of the cost of installing an electric heat pump through the Energy Efficient Home Improvement tax credit under Internal Revenue Code section 25C, which was expanded by IRA section 13301.