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 reduce your electricity costs, but they're also more compact and easier to install than conventional heating and cooling systems.
In addition, 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? Contact the experts at Anderson Heating & A/C to schedule your heat pump installation in Carson City.
What Is the Inflation Reduction Act
The Inflation Reduction Act of 2022 intends to reduce inflation's impact on the country. An increasingly popular 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 systems like heat pumps. Now's the perfect time to go green!
How Will the Inflation Reduction Act Affect Me
The Inflation Reduction Act helps lower residential energy costs by making heat pumps and other energy-efficient home upgrades more affordable. It does that by recouping costs through rebates and tax credits.
When considering 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 available from 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 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 applies to you or what the typical income for your community is? The nonprofit group Rewiring America has an online calculator you can use to 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 with incomes that exceed what qualifies 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.
Distinct from the rebate, which is accessible right at the time of purchase, the tax credit is received once you have filed 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
Which Heat Pumps Are Eligible 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 the very least, a heat pump needs to have ENERGY STAR® certification for eligibility for the rebate or tax credit. Additional details are available from our team at Anderson Heating & A/C.
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 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, is something you redeem on your taxes.* It lowers the total amount of money you owe to the IRS when you file your taxes.
*Consult with a tax professional for full details on how to apply
Reach Out to the Pros at Anderson Heating & A/C 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 protect the environment thanks to tax credits and rebates from the Inflation Reduction Act. Anderson Heating & A/C is here to help with all of the details on these discount programs so you get maximum savings! We're ready to help make your next heat pump installation Carson City a smooth and easy experience.