Energy-Efficient HVAC System Tax Incentives
On August 16, 2022, President Joe Biden signed the Inflation Reduction Act of 2022 (IRA) into law, offering energy-efficient HVAC system tax incentives. For many homeowners, this could mean receiving highly discounted or even no-cost heat pumps or other energy-efficient HVAC systems for their homes. At ClimateSmith, LLC, we are excited to help our customers take advantage of these incentives while improving their home heating and cooling systems.
The IRA is designed to shift energy use from fossil fuels to “cleaner” forms of energy such as electric and solar. Part of the $369 billion designated for the IRA is incentives for homeowners who upgrade their heating and cooling from less efficient HVAC systems to electric heat pumps. Heat pumps are considered more energy efficient than traditional furnace and air conditioning systems. The High Efficiency Electric Home Rebate Act (HEEHRA) outlined in the IRA allows for point-of-sale rebates on heat pumps for individuals, paying up to $8000 for a new heat pump installed in homes.
Inflation Reduction Act – Rebates and Credits!
The Inflation Reduction Act, or IRA, will become effective on January 1, 2023. The HEEHRA is geared toward individuals who are lower income, giving the most significant rebates to those who make 80% or less of the median income in their area. For example, the median income in Alpharetta, GA is currently $95,700. Those who make less than 80%, which is $76, 560, could qualify for the full $8,000 rebate for a heat pump. The median income may change over time, but this is an example of those who could qualify for the maximum rebate.
Even if you make more than 80% of your area’s median income, you may still qualify for rebates or tax credits under the IRA. Those who make 81-150% of the median income in their area can receive up to 50% off the price of their heat pump. For those who do not qualify for the point-of-sale rebate, tax credits of up to $2,000 may be available for those who upgrade to a heat pump in 2023.
If you are interested in converting to a heat pump or other energy-efficient heating or cooling system, contact us at ClimateSmith, LLC in Alpharetta, GA. We are your local source for information on taking advantage of the Inflation Reduction Act’s rebates and tax credits for heat pump installations.