Are you a homeowner looking for ways to reduce your energy costs? Look no further! The Inflation Reduction Act Heat Pump Rebate program is here to help you save money. Through this incentive program, consumers can get a tax credit when installing a qualifying heat pump. Not only does this rebate make it more affordable to upgrade from conventional heating systems but investing in a qualified heat pump will also help improve comfort and efficiency throughout your entire home.
Douglas Cooling & Heating explains how you can take advantage of the inflation reduction act tax credits and heat pump rebates for your home. A new heat pump can help lower utility bills and decrease your annual energy expenses! Read on to learn more about the details of this money-saving offer.
What Is the Inflation Reduction Act?
At Douglas Cooling & Heating, we are committed to providing our customers with the best HVAC services and products. One way we do this is by staying informed about new laws and programs that can help our customers save money and improve their HVAC systems. One such program is the Inflation Reduction Act, which offers rebates to homeowners who make energy-efficient upgrades around their homes. Homeowners can get rebates on solar panels, electric vehicles, heat pump, water heaters, and more!
The Inflation Reduction Act includes measures that aim to help homeowners reduce their energy costs by upgrading their HVAC systems to more energy-efficient models. The Act provides tax credits to homeowners who install certain types of HVAC equipment, such as high-efficiency heat pumps. These tax credits can help to offset the cost of purchasing and installing a new HVAC system, making it more affordable for homeowners to upgrade their HVAC systems.
Residential Clean Energy Tax Credit
The Residential Clean Energy Tax Credit applies to both air source and geothermal heat pumps. Eligible systems must meet specific energy efficiency standards set by the U.S. Department of Energy (DOE).
- Qualifying air source heat pumps must be placed in service between January 1, 2022 to December 31, 2032. The credit is worth 30% of the cost of the heat pump and installation, up to 20%.
- For qualifying geothermal heat pump systems installed between January 1, 2022 to December 31, 2032, the credit is worth 30% of the associated costs with no cap on the amount of credit that can be claimed.
It’s important to note that this tax credit is not a refundable credit, meaning you can only claim the credit if you have a tax liability. If the credit exceeds your tax liability, the excess will not be refunded to you. Also, this credit is available for primary residences only and not for rental properties or vacation homes.
High-Efficiency Electric Home Rebate Act
The High-Efficiency Electric Home Rebate Act (HEEHRA) is an incredible way to take the next step toward a greener, more sustainable home. By taking advantage of this program, you can reduce your electricity bill and make your house more eco-friendly through energy efficiency upgrades that improve air quality while keeping the temperature comfortable and consistent. Best of all, these upgrades are made even more accessible by the hefty rebates given for qualifying improvements.
This program is designed to assist low- to moderate-income families. When installing a qualifying heat pump, families that meet the low-income threshold can receive a 100% rebate of up to $8,000; moderate-income families will receive a 50% rebate of up to $8,000.
Call Douglas Cooling & Heating to Help Improve Your Home Today!
Though the cost of a heat pump installation may seem like a large upfront expense, measures in the Inflation Reduction Act incentives can help to ease that burden. If you’re interested in learning more about this exciting opportunity or would like to schedule a consultation, please don’t hesitate to contact Douglas Cooling & Heating today. We’d be happy to answer any questions you have and help get you started on upgrading your home’s comfort with the installation of an electric heat pump or geothermal heat pump this year.
