Heat pumps are considered some of the most energy-efficient solutions for keeping your home comfortable all year-round. Not only do they save you money on electricity bills, but they're also more compact and easier to install than conventional heating and cooling systems.
Additionally, right now the Inflation Reduction Act provides rebates of a maximum of $8,000, lowering costs for new installation even further. What are you waiting for? Call the pros at E.B. Air, LLC to request heat pump installation in East Bernard.
What Is the Inflation Reduction Act
The Inflation Reduction Act of 2022 was written in hopes of reducing the effects of inflation on the country. One potential strategy is funding green technology and making efficient, eco-friendly home improvements more affordable.
You can earn both rebates and tax credits after purchasing energy-efficient upgrades including heat pumps. Now's the perfect time to go green!
How Will the Inflation Reduction Act Influence My Energy Costs
The Inflation Reduction Act affects you and other homeowners by making heat pumps and other energy-efficient home upgrades more affordable. It does this through a combination of rebates and tax credits.
When it comes to the Inflation Reduction Act heat pump rebates and tax credits, you have two main options for saving money. The program you choose is dependent on your income.
The two programs available are:
- Inflation Reduction Act heat pump rebate
- Inflation Reduction Act heat pump tax credit
What Is the Inflation Reduction Act Heat Pump Rebate
The rebate found in the Inflation Reduction Act is for low-income and moderate-income homeowners. Your rebate can cover the entire cost of heat pump installation for low-income homeowners and up to 50% percent for moderate-income homeowners.
The rebate can't exceed $8,000 for both low-income and moderate-income homeowners. It is a point-of-sale rebate, which means you deduct the rebate from the initial purchase price of the heat pump.
The income conditions are:
- Low Income: Less than 80% of the area median income
- Moderate Income: 80-150% of the area median income
Uncertain which income category applies to you or what the typical income for your community is? The nonprofit group Rewiring America created an online calculator so you can find out. Just provide your ZIP Code and household income.
What Is the Inflation Reduction Act Heat Pump Tax Credit
For homeowners that make too much to be eligible for the heat pump rebate, there is an Inflation Reduction Act heat pump tax credit. Along with the ability to redeem the credit for up to 30 percent of the purchase or installation of a heat pump, the heat pump tax credit is worth no more than $2,000.
Unlike the rebate, which is accessible right at the time of purchase, the tax credit is received once you have filed your taxes.* Keep your receipt, because the credit can be claimed the same year the heat pump was purchased.
*Consult with a tax professional for full details on how to apply
Which Heat Pumps Are Eligible for the Inflation Reduction Act
The Inflation Reduction Act heat pump tax credits and rebates are only accessible after the purchase and installation of energy-efficient heat pump models.
At the very least, a heat pump needs to have ENERGY STAR® certification for the rebate or tax credit to apply. You can get all the details from our team at E.B. Air, LLC.
How Do I Get the Inflation Reduction Act Rebate
If you are an eligible homeowner, the heat pump rebate in the Inflation Reduction Act can be earned right when you purchase the heat pump. You get it promptly since it's deducted from the price of purchase and installation of the heat pump. There’s no need to send in a proof of purchase or wait for a rebate to come later.
The Inflation Reduction Act heat pump tax credit, conversely, must be redeemed on your taxes.* It lowers the total amount of money owed to the government after you've finished filing taxes.
*Consult with a tax professional for full details on how to apply
Call Your Local Pros at E.B. Air, LLC for More Information About the Inflation Reduction Act Heat Pump Rebate and Tax Credit
Thanks to a high-efficiency heat pump, you can save money and protect the environment thanks to tax credits and rebates from the Inflation Reduction Act. E.B. Air, LLC can help with the specifics on these discount programs so you receive the greatest savings possible! We're ready and able to help make your next heat pump installation East Bernard a stress-free experience.