Heat Pump Tax Incentives for Rental Property in the Inflation Reduction Act

[Corey Gregg]

Hello, I own a duplex and I currently live in one side and rent out the other, although I intend to move before the end of this year when I will rent out both sides for LTRs.  The air conditioner and heating system on each side is aging, although they are probably about five years from needing to be replaced.  I would like to replace them when they break with a heat pump system, which would be better for the environment and also might qualify for tax rebates.

My question is whether replacing my side's HVAC now--while I am still living here with a homestead exemption--would change the tax breaks available to me; and whether any tax incentives to replace the HVAC with a heat pump exists for landlords.

I am aware of a $2,000 federal tax credit for homeowners, but if anyone knows any Louisiana specific tax credits that would be great information as well!  Thank you!