Inspector made a good call. #12 awg wire is good for 25a. in this application and 430.22 would ask for 125% of Table 430.148 which turns out to be 25a. No room to add any more load. See 430.24 The namplate on the motor will give you the actual draw of the motor once it gets running. As for HP rating of the breaker, I would be surprized if this would be a problem. Have to check with the manufacturer for that info.
