Vermont has the deepest cold-climate-heat-pump rebate stack in the United States. Four sources — federal, state, utility, and the IRA-funded HEEHRA point-of-sale rebate — combine on a single residential install to reduce the customer's out-of-pocket by 40-70% off sticker.
Almost every customer arrives confused about how they stack, what's claimed when, and which combinations cancel each other out. The confusion is fair. The interaction of 25C and HEEHRA in particular has been ambiguous for two years, and the Vermont implementation of HEEHRA only finalized in mid-2025.
Voltline handles the paperwork on your behalf. We file the Efficiency Vermont rebate. We file the utility instant rebates. We hand you the IRS Form 5695 packet you need for your tax return. The HEEHRA rebate, if you qualify, is applied at the quote — not paid to you later.
The Energy Efficient Home Improvement Credit, codified at IRC §25C. Caps at $2,000 for heat pumps installed in a primary residence. Claimed on next year's tax return via IRS Form 5695. Cannot be claimed retroactively. NOT stackable with HEEHRA on the same equipment — you choose one or the other for a given piece of equipment. (HEEHRA is usually better if you qualify.) Annual cap resets each tax year, so a multi-phase project can claim 25C on the heat pump one year and the HPWH the next.
Vermont's statewide energy efficiency utility rebate program. The heat-pump rebate is typically $4,000 for a NEEP-listed cold-climate system, paid at install. The heat-pump water heater rebate is $1,500. Voltline files the paperwork; you do not handle it. Stackable with everything else on the stack. The qualified equipment list is on the Efficiency Vermont website; every system Voltline installs is on the list.
Green Mountain Power customers: $1,200 instant rebate on a cold-climate heat pump, applied at quote. $400 on a heat-pump water heater. Burlington Electric Department customers: $1,500 heat pump + $500 HPWH. These are point-of-sale — they reduce the line on your quote, you do not pay them out and wait for a check.
The Inflation Reduction Act High-Efficiency Electric Home Rebate Act. A point-of-sale rebate for income-qualified households. ≤150% Area Median Income (AMI) qualifies for partial; ≤80% AMI qualifies for full. Up to $8,000 for the heat pump, plus separate caps for HPWH ($1,750), induction ($840), and panel upgrade ($4,000). Total project cap $14,000. Vermont's HEEHRA implementation rolled out in 2025; Voltline is an approved contractor.
HEEHRA is NOT stackable with 25C on the same equipment — you choose. HEEHRA is almost always better when you qualify, because it's larger and it's point-of-sale (immediate) instead of a year-later tax credit.
The Hartwells. Burlington 1968 cape, oil boiler removed, Mitsubishi PUZ-HA42 installed.
80% AMI qualified household. Burlington Electric. PUZ-HA48 install.
Full electrification stack. Heat pump + HPWH + panel + induction/EV pre-wires.
We file the Efficiency Vermont rebate paperwork on your behalf — typically about ten pages of forms, equipment specs, and proof-of-install documentation submitted within 45 days of install. The rebate is paid to Voltline at the close, and we pass it through as a line-item reduction on your final invoice. You see the rebate, you don't have to chase it.
We file the Green Mountain Power or Burlington Electric instant rebate at quote time. The line appears on your written quote.
For the federal 25C credit, we provide you with the IRS Form 5695 documentation packet you need to file with your tax return — equipment make and model, AHRI certified-product reference number, install date, and total qualifying cost. You file the 5695 with your annual return; the credit reduces your tax liability dollar-for-dollar.
For HEEHRA, we handle the income verification (you provide an AGI document from your tax return or a recent paystub) and submit the rebate-administrator paperwork. The rebate is applied to your quote before you sign it. You do not pay it out and wait.
A rough first-pass indicator. Actual qualification is verified at quote with documentation.
This estimator uses Chittenden County Area Median Income (AMI) values published by HUD for 2025. AMI thresholds vary slightly by Vermont county; we confirm using your actual ZIP at the quote stage.
Voltline does a free 20-minute phone consultation, followed by a free 90-minute on-site assessment, followed by a written quote within 5 business days. The rebate stack is calculated into the quote on day one — no surprises later.