Heat pumps are considered some of the most energy-efficient solutions for keeping your home comfortable all year-round. Not only do they help lower your monthly electricity bill, but they also free up valuable space as they’re much smaller than traditional heating and cooling systems.
In addition, right now the Inflation Reduction Act offers a rebate of up to $8,000, making it even more affordable than ever. So don't wait! Get in touch with the comfort specialists at Temperature Doctors Heating & Cooling, Inc to arrange heat pump installation in Rockford.
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 of the ways it does that is by funding green technology and making sustainable HVAC systems more affordable.
You can earn these rebates and tax credits when you purchase energy-efficient systems like heat pumps. Now is a great opportunity to go green!
How Will the Inflation Reduction Act Influence My Energy Costs
The Inflation Reduction Act helps lower residential energy costs by making heat pumps and other energy-efficient home upgrades more affordable. It does this through a combination of rebates and tax credits.
Regarding the Inflation Reduction Act heat pump rebates and tax credits, you have two options for lowering costs. Which program you use 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. The rebate covers 100 percent of the cost of heat pump installation for low-income homeowners and up to 50% percent for moderate-income homeowners.
The rebate has a maximum of $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
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 with incomes that exceed what qualifies for a 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 used immediately during your initial purchase, the tax credit is claimed when you do your taxes.* Don't lose 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
What Heat Pumps Qualify 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 must demonstrate ENERGY STAR® certification to be eligible for a rebate or tax credit. Ask for more information from our team at Temperature Doctors Heating & Cooling, Inc.
How Do I Get the Inflation Reduction Act Rebate
For homeowners who qualify, 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, conversely, must be received after you file taxes.* It lowers the total amount of money you owe the government when you file your taxes.
*Consult with a tax professional for full details on how to apply
Call Your Local Pros at Temperature Doctors Heating & Cooling, Inc for More Information About the Inflation Reduction Act Heat Pump Rebate and Tax Credit
With the energy efficiency of a brand-new heat pump, you can save money and do your part for the environment thanks to tax credits and rebates from the Inflation Reduction Act. Temperature Doctors Heating & Cooling, Inc is happy to help you navigate the details on these discount programs so you can enjoy more savings! We're ready to help make your next heat pump installation Rockford a stress-free experience.