Heat pumps are some 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're also more compact and easier to install than conventional 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! Call the pros at J & J Air Conditioning to request heat pump installation in Eastland.
What Is the Inflation Reduction Act
The Inflation Reduction Act of 2022 intends to reduce inflation's impact 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 equipment such as 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 that in the form of 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. The ideal option depends 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 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 can't exceed $8,000 for both low-income and moderate-income homeowners. It is a point-of-sale rebate, which means you subtract the rebate from the initial cost of a new heat pump.
The income conditions are:
- Low Income: Less than 80% of the area median income
- Moderate Income: 80-150% of the area median income
Unsure which income category you're in or what the average income is in your area? The nonprofit group Rewiring America created an online calculator so you can 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. 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.
Distinct from the rebate, which is available at the time of purchase, the tax credit is applied as you file your taxes.* Hold onto the 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 minimum, a heat pump must demonstrate ENERGY STAR® certification for the rebate or tax credit to apply. Ask for more information from our team at J & J Air Conditioning.
How Do I Get the Inflation Reduction Act Rebate
For homeowners who qualify, the heat pump rebate in the Inflation Reduction Act can be earned after purchasing the heat pump. You get it right away since it's 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, alternatively, must be redeemed on your taxes.* It lowers the total amount of money you owe the government after you've finished filing taxes.
*Consult with a tax professional for full details on how to apply
Call Your Local Pros at J & J Air Conditioning for Details About the Inflation Reduction Act Heat Pump Rebate and Tax Credit
With a high-efficiency heat pump, you can save money and protect the environment thanks to tax credits and rebates from the Inflation Reduction Act. J & J Air Conditioning is happy to help you navigate the details on these discount programs so you get maximum savings! We're ready and able to help make your next heat pump installation Eastland a stress-free experience.