Heat pumps have been hailed as one of the most energy-efficient solutions for year-round comfort in your home. Not only do they reduce your electricity costs, but they're also more compact and easier to install than conventional heating and cooling systems.
What’s even better, right now the Inflation Reduction Act offers a rebate of up to $8,000, making new installation even more affordable. So why wait? Contact the experts at Strine's Heating & Air Conditioning to request heat pump installation in York.
What Is the Inflation Reduction Act
The Inflation Reduction Act of 2022 was created to reduce the impact of inflation on the country. One of the ways it does that is by funding green technology and making high-efficiency utility equipment and appliances more affordable.
You can earn these rebates and tax credits when you 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 keeps utility costs lower 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 deduct the rebate from the initial purchase price of the 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
Uncertain which income category you fall into or what the median income is where you live? 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. Redeemable 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.
Unlike the rebate, which is used immediately during your initial purchase, the tax credit is claimed when you do 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
What Heat Pumps Qualify for the Inflation Reduction Act
The Inflation Reduction Act heat pump tax credits and rebates only apply to the purchase and installation of energy-efficient heat pump models.
At the very least, a heat pump must have ENERGY STAR® certification for the rebate or tax credit to apply. Additional details are available from our team at Strine's Heating & Air Conditioning.
How Do I Get the Inflation Reduction Act Rebate
For qualifying homeowners, 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 don't have 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 redeemed on your taxes.* It reduces 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
Reach Out to the Pros at Strine's Heating & Air Conditioning for Details 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 using tax credits and rebates from the Inflation Reduction Act. Strine's Heating & Air Conditioning is happy to help you navigate the details on these discount programs so you receive the greatest savings possible! We're ready and able to help make your next heat pump installation York a smooth and easy experience.