Cut Heating Costs 60%.
Future-Proof Your North American Facility.
The EPA AIM Act is phasing out HFCs by 85% before 2036. Natural gas prices are climbing. Karnot R290 and CO₂ heat pumps deliver lower operating costs today — and the IRA gives you 30% back on day one.
See Your North American Savings Instantly
Drag the sliders to model your savings — in US or Canadian dollars
🇺🇸 US Federal & State Incentives
Stack federal tax credits, state rebates, and utility programmes for maximum upfront offset and shortest payback.
Inflation Reduction Act
30% Investment Tax Credit for qualifying commercial heat pump installations using natural refrigerants. Bonus 10% credit for domestic content. Additional 10% for energy communities. Stack with state programmes for maximum offset.
State & Utility Rebates
California (TECH Clean California), New York (NY-Sun, Con Edison), Massachusetts (Mass Save), Colorado, Minnesota all offer additional rebates stacked on IRA. Many utility companies offer on-bill financing.
Rural Energy for America
USDA REAP grants cover up to 50% of project costs for agricultural producers and rural small businesses. Combined with IRA credits, effective cost can be as low as 20% of installation cost.
🇨🇦 Canadian Incentives & Programmes
Federal grants, provincial top-ups, and ongoing carbon tax savings make switching to heat pumps even more compelling across Canada.
Canada Greener Homes
Federal grants for residential heat pump installations. Up to $5,000 for air source heat pumps, plus free energy audit. Available through Natural Resources Canada.
Provincial Top-Ups
- BC: CleanBC — up to $6,000 additional
- Ontario: Save on Energy — up to $7,500
- Quebec: ClimaExpert — $2,500 commercial
- Nova Scotia: Efficiency Nova Scotia
Federal Carbon Price 2030
Canada's carbon pricing reaches $170/tonne CO₂e by 2030. Commercial gas boilers face significant ongoing cost increases. Switching to heat pumps eliminates carbon tax exposure entirely on heating.
Regulatory Landscape: Why Natural Refrigerants Win
Both the US and Canada are accelerating HFC phase-down. R290 and CO₂ are the only truly future-proof choice.
🇺🇸 United States — EPA AIM Act
- 85% HFC consumption reduction required by 2036
- EPA SNAP Rule 23: R410A and R134a restricted in new commercial equipment
- California CARB leading with state-level restrictions ahead of federal timeline
- R290 (GWP 3) and CO₂ (GWP 1) are fully exempt from all AIM Act restrictions
- DOE efficiency standards tightening — heat pumps outperform gas boilers
🇨🇦 Canada — Kigali Amendment
- 85% HFC reduction by 2036 under Montreal Protocol Kigali Amendment
- Environment Canada HCFC/HFC regulations aligning with US AIM Act timeline
- Federal carbon pricing at $170/tonne CO₂e by 2030 — makes gas increasingly expensive
- BC, Quebec, Ontario adopting strong heat pump incentive programmes
- Natural refrigerants (R290, CO₂) fully compliant with all current and proposed Canadian regulations
Why North American Businesses Choose Karnot
Engineered for continental climates — from Phoenix summers to Toronto winters
iHEAT R290 delivers heat at 3.5¢/kWh. A 100-room hotel saves $32,400/year on hot water alone. A hospital can cut $54,000/year from its heating bill.
Federal Investment Tax Credit covers 30% of installation costs. Stack with state rebates and utility incentives for payback under 3 years in many cases.
R290 and CO₂ are fully exempt from HFC phase-down regulations. No quota risk, zero supply disruption, zero refrigerant price escalation.
Natural refrigerants contain zero per- and polyfluoroalkyl substances. Fully ahead of expanding EPA PFAS regulations.
CO₂ transcritical systems excel in cold Canadian winters. R290 maintains high COP in Sunbelt heat. Full North American climate coverage.
Natural refrigerant adoption strengthens Scope 1 & 2 reporting. Measurable GHG reduction for LEED, BREEAM, and carbon commitments.
Products Available in USA & Canada
Commercial and industrial systems for heating, cooling, storage, and efficiency upgrades
iHEAT R290 & CO₂
Commercial heat pumps for hot water, space heating, and process heat. COP 3.2–4.5 across North American climates. 9.5–75kW range.
View iHEAT RangeiCOOL CO₂
CO₂ transcritical refrigeration for cold chain, supermarkets, and food processing. Already the dominant technology in EU grocery — now available in North America.
View iCOOL RangeAquaHERO
R290 heat pump water heaters for hotels, multifamily housing, and commercial buildings. IRA eligible. Replaces electric resistance or gas boilers with COP 3.5+.
View Water HeatersiMESH Adiabatic
Bolt-on adiabatic cooling retrofit for existing HVAC. 20–30% efficiency boost, 21-week average payback. No refrigerant — pure evaporative cooling.
View iMESHClaim Your 30% IRA Tax Credit — Free Consultation
Karnot helps US and Canadian businesses navigate IRA Section 25C/48 tax credits for natural refrigerant heat pump installations, AIM Act compliance, and state-level incentive stacking — so you capture every dollar available.
Frequently Asked Questions
Are Karnot heat pumps eligible for the IRA Investment Tax Credit?
Yes. Karnot iHEAT R290 and CO₂ heat pumps qualify for the 30% Investment Tax Credit (ITC) under the Inflation Reduction Act for commercial and industrial installations. Additional bonus credits of 10% are available for domestic content and another 10% for projects in designated energy communities, potentially bringing the total federal credit to 50%. These can be stacked with state rebates and utility programmes for payback periods under three years in many cases.
Are Karnot heat pumps compliant with the EPA AIM Act?
Yes. R290 (propane, GWP 3) and CO₂ (GWP 1) are fully exempt from all EPA AIM Act HFC consumption restrictions and quota requirements. The AIM Act mandates an 85% reduction in HFC consumption by 2036 and restricts refrigerants including R410A and R134a in new commercial equipment under EPA SNAP Rule 23. Karnot's natural refrigerant systems face no quota risk, no supply disruption, and no refrigerant price escalation — now or in the future.
How much can a hotel or hospital save with Karnot heat pumps?
A 100-room hotel using Karnot iHEAT R290 for hot water heating saves approximately $32,400 per year compared to a natural gas boiler, based on US average commercial electricity and gas prices. A hospital-scale operation with higher hot water demand can save $54,000 or more annually. Actual savings depend on facility size, local utility rates, current system type, and hot water consumption. Karnot provides detailed savings modelling and a free quote for every project.