Heat pumps are some of the most energy-efficient solutions for keeping your home comfortable all year-round. Not only do they reduce your electricity costs, but they can help minimize strain on any other heating and cooling systems.
Additionally, right now the Inflation Reduction Act provides rebates of a maximum of $8,000, making it even more affordable than ever. So don't wait! Get in touch with the comfort specialists at Jack's Heating, Cooling, Stoves & Fireplaces to request heat pump installation in Alliance.
What Is the Inflation Reduction Act
The Inflation Reduction Act of 2022 was created to reduce the impact of inflation on the country. One potential strategy is funding green technology and making high-efficiency utility equipment and appliances more affordable.
Homeowners can benefit from major rebates and tax credits when they purchase energy-efficient equipment such as heat pumps. Now is a great opportunity 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 that in the form 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 heat pump rebate 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 criteria are:
- Low Income: Less than 80% of the area median income
- Moderate Income: 80-150% of the area median income
Unsure which income category you fall into or what the median income is where you live? The nonprofit group Rewiring America created an online calculator so you can find out. You only need to provide your ZIP Code and household income.
What Is the Inflation Reduction Act Heat Pump Tax Credit
For homeowners whose income is too high to qualify for a heat pump rebate, there is an Inflation Reduction Act heat pump tax credit. With the option to recoup up to 30 percent after 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 available 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 Models of Heat Pumps Qualify for the Inflation Reduction Act
The Inflation Reduction Act heat pump tax credits and rebates can only be used for the purchase and installation of energy-efficient heat pump models.
At minimum, a heat pump must demonstrate ENERGY STAR® certification for eligibility for the rebate or tax credit. Ask for more information from our team at Jack's Heating, Cooling, Stoves & Fireplaces.
How Do I Get the Inflation Reduction Act Rebate
For qualifying homeowners, the heat pump rebate in the Inflation Reduction Act is available when you purchase the heat pump. You get it right away as it is subtracted 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, on the other hand, must be redeemed on your taxes.* It lowers the total amount of money you owe the government once you file taxes.
*Consult with a tax professional for full details on how to apply
Contact the Comfort Pros at Jack's Heating, Cooling, Stoves & Fireplaces for Details About the Inflation Reduction Act Heat Pump Rebate and Tax Credit
Thanks to a high-efficiency heat pump, you can save money and do your part for the environment courtesy of tax credits and rebates from the Inflation Reduction Act. Jack's Heating, Cooling, Stoves & Fireplaces is here to help with all of the details on these discount programs so you receive the greatest savings possible! We're ready and able to help make your next heat pump installation Alliance a smooth and easy experience.