The Indicator from Planet Money Warming your house the green way just got more expensive
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Feb 4, 2026 The conversation covers the sudden rise in heat pump costs after a federal tax credit expired. They explore why homeowners favored heat pumps and how past energy-efficiency incentives worked. The discussion touches on who benefited from subsidies, industry risks and demand forecasts, plus local rebates that try to fill the gap.
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Heat Pump Installed Just In Time
- Brendan Jackson and Michelle Dutro installed a heat pump as their first major upgrade after buying a quirky house in Juneau, Alaska.
- They rushed to install it before the tax credit deadline and completed installation on December 26th to lock in savings.
Install Before Federal Credits Expire
- Install qualifying equipment before incentives expire to maximize federal savings.
- Claim the credit when filing taxes to offset up to $2,000 of installation costs.
Credits Were Cut Short By Congress
- The Inflation Reduction Act expanded home energy credits but Congress accelerated their sunset to end in 2025.
- That early expiration changes incentives and may shift who adopts energy-saving tech now versus later.