September 13, 2026 · 6 min read
Installing a heat pump has never been more affordable in Ohio. Between federal tax credits, state incentive programs, and utility rebates, Marion-area homeowners can save $2,000–$8,000 or more on a qualifying system. Here's what's available right now.
Federal Tax Credits (Inflation Reduction Act)
The Inflation Reduction Act (IRA) provides a 30% federal tax credit on qualifying heat pump installations, up to $2,000 per year. This applies to both air-source and ground-source (geothermal) heat pumps that meet the following efficiency requirements:
- Air-source heat pumps: Must meet or exceed the CEE highest efficiency tier (ENERGY STAR Most Efficient)
- Geothermal heat pumps: 30% credit with no dollar cap (separate from the $2,000 annual limit)
The credit is claimed on your federal income tax return (IRS Form 5695). You don't need to itemize — it directly reduces your tax bill. The IRA credits are available through 2032.
High-Efficiency Electric Home Rebate Act (HEEHRA)
Also part of the IRA, HEEHRA provides point-of-sale rebates (applied at time of purchase, not tax season) for qualifying households:
- Up to $8,000 for heat pump HVAC systems
- Up to $1,750 for heat pump water heaters
- Income-eligible: households under 150% of area median income (AMI) get the full rebate; 80–150% AMI get 50%
Ohio is administering these rebates through the Ohio Department of Development. Check their website or call us for the latest status on rebate availability in our area.
Ohio Utility Rebates
AEP Ohio (the electric utility serving most of Marion County) offers rebates for high-efficiency HVAC equipment. Amounts vary by year and program availability, but typical rebates include:
- $300–$800 for qualifying air-source heat pumps (SEER2 16+)
- $200–$400 for smart thermostat installation (when paired with a heat pump)
- Additional rebates may be available through Columbia Gas of Ohio for dual-fuel systems
We track these programs and handle the paperwork for our customers. When we quote a heat pump installation, we'll tell you exactly which rebates apply and how much you'll save.
How the Numbers Work: A Marion Example
Example: 3-ton air-source heat pump installation
| System + installation cost | $9,500 |
| Federal tax credit (30%) | −$2,000 |
| AEP Ohio rebate | −$500 |
| HEEHRA rebate (if income-eligible) | −$4,000 to −$8,000 |
| Your net cost | $0 – $7,000 |
Is a Heat Pump Right for Marion's Climate?
Modern cold-climate heat pumps work efficiently down to −15°F or lower — well below Marion's typical winter lows. They heat your home by extracting warmth from outdoor air (yes, even in winter) and deliver 2–3 times more heating energy per kilowatt than electric resistance heat. Read our heat pump vs. furnace comparison for a deeper dive.
For Marion homeowners with natural gas, a dual-fuel system (heat pump + gas furnace backup) often makes the most financial sense. The heat pump handles most of the year, and the furnace kicks in during the coldest nights.
We Handle the Paperwork
Navigating rebate applications, tax forms, and manufacturer certifications can be overwhelming. When you work with PJ's, we identify every incentive you qualify for, fill out the utility rebate paperwork, and provide the manufacturer certifications you need for your tax return. You just sign and save.