Heat pumps are considered some of the most energy-efficient solutions for year-round comfort in your home. Not only do they help lower your monthly electricity bill, but they also free up valuable space as they’re much smaller than traditional 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? Get in touch with the comfort specialists at Air Commander's Heating & Air Conditioning Co. to schedule your heat pump installation in Haines City.
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. An increasingly popular strategy is funding green technology and making sustainable HVAC systems more affordable.
You can earn both rebates and tax credits after purchasing energy-efficient upgrades including heat pumps. There has never been a better time to go green!
How Will the Inflation Reduction Act Impact Me?
The Inflation Reduction Act keeps utility costs lower by making heat pumps and other energy-efficient home upgrades more affordable. It does this through a combination of rebates and tax credits.
Regarding the Inflation Reduction Act heat pump rebates and tax credits, you have two options for lowering costs. Which program you use is dependent 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. The rebate covers 100 percent of the cost of heat pump installation for low-income homeowners and up to 50% percent for moderate-income homeowners.
The rebate has a maximum of $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
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. With the option to recoup up to 30 percent after the purchase or installation of a heat pump, the heat pump tax credit is worth no more than $2,000.
Different from the rebate, which is available at the time of purchase, the tax credit is received once you have filed your taxes.* Keep 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 have ENERGY STAR® certification for the rebate or tax credit to apply. Additional details are available from our team at Air Commander's Heating & Air Conditioning Co..
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 right when you purchase the heat pump. You get it promptly because it is deducted 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, alternatively, is something you redeem on your taxes.* It lowers the total amount of money owed to the government once you file taxes.
*Consult with a tax professional for full details on how to apply
Reach Out to the Pros at Air Commander's Heating & Air Conditioning Co. for Details About the Inflation Reduction Act Heat Pump Rebate and Tax Credit
With a high-efficiency heat pump, you can save money and do your part for the environment courtesy of tax credits and rebates from the Inflation Reduction Act. Air Commander's Heating & Air Conditioning Co. can help with the specifics on these discount programs so you get maximum savings! We're ready to help make your next heat pump installation Haines City a seamless experience.