Heat pumps are considered some 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 can help minimize strain on any other heating and cooling systems.
What’s even better, right now the Inflation Reduction Act provides rebates of a maximum of $8,000, making it even more affordable than ever. So why wait? Call the pros at Air Service Co. to schedule your heat pump installation in Muldrow.
What Is the Inflation Reduction Act
The Inflation Reduction Act of 2022 was written in hopes of reducing the effects of inflation 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 both rebates and tax credits after purchasing energy-efficient systems like heat pumps. There has never been a better time to go green!
How Will the Inflation Reduction Act Impact Me?
The Inflation Reduction Act affects you and other homeowners by making heat pumps and other energy-efficient home upgrades more affordable. It does that by recouping costs through 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 rebate found 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 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 created an online calculator so you can find out. Just provide your ZIP Code and household income.
What Is the Inflation Reduction Act Heat Pump Tax Credit
For homeowners that make too much to be eligible for the 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 no more than $2,000.
Unlike the rebate, which is used immediately during your initial purchase, the tax credit is applied as you file 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
What Heat Pumps Qualify for the Inflation Reduction Act
The Inflation Reduction Act heat pump tax credits and rebates are only accessible after the purchase and installation of energy-efficient heat pump models.
At minimum, a heat pump must demonstrate ENERGY STAR® certification for eligibility for the rebate or tax credit. You can get all the details from our team at Air Service Co..
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 as it is subtracted from the price of purchase and installation of the heat pump. There’s no need to send in a proof of purchase or wait for a rebate to come later.
The Inflation Reduction Act heat pump tax credit, on the other hand, must be redeemed on your taxes.* It decreases 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
Contact the Comfort Pros at Air Service Co. for More Information About the Inflation Reduction Act Heat Pump Rebate and Tax Credit
With the energy efficiency of a brand-new heat pump, you can save money and do your part for the environment thanks to tax credits and rebates from the Inflation Reduction Act. Air Service Co. can help with the specifics on these discount programs so you get maximum savings! Our certified team is ready to help make your next heat pump installation Muldrow a seamless experience.