Heat pumps have been hailed as one of the most energy-efficient solutions for keeping your home cool in summer and warm in winter. Not only do they help lower your monthly electricity bill, but they can help minimize strain on any other heating and cooling systems.
In addition, right now the Inflation Reduction Act offers a rebate of up to $8,000, making new installation even more affordable. So don't wait! Contact the experts at H & H Service Company to schedule your heat pump installation in Mechanicsburg.
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 sustainable HVAC systems more affordable.
You can earn these rebates and tax credits when you purchase energy-efficient systems like heat pumps. There has never been a better time to go green!
How Will the Inflation Reduction Act Impact Me?
The Inflation Reduction Act affects you and other homeowners by making heat pumps and other energy-efficient home upgrades more affordable. It does that by recouping costs through rebates and tax credits.
When it comes to the Inflation Reduction Act heat pump rebates and tax credits, there are two ways to save money. 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. A rebate covers the entirety 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 it is deducted from the purchase price when you buy the heat pump.
The income guidelines 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. All you need is 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. 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 a maximum of $2,000.
Different from the rebate, which is accessible right at the time of 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 minimum, a heat pump must demonstrate ENERGY STAR® certification for the rebate or tax credit to apply. Additional details are available from our team at H & H Service Company.
How Do I Get the Inflation Reduction Act Rebate
If you are an eligible homeowner, the heat pump rebate in the Inflation Reduction Act is available when you purchase the heat pump. You get it promptly because it is deducted from the price of purchase and installation of the heat pump. You aren't required 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 owed to the government when you file your taxes.
*Consult with a tax professional for full details on how to apply
Contact the Comfort Pros at H & H Service Company to Learn More 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. H & H Service Company is happy to help you navigate the details on these discount programs so you get maximum savings! We're ready to help make your next heat pump installation Mechanicsburg a smooth and easy experience.