Heat pumps are considered some of the most energy-efficient solutions for keeping your home comfortable all year-round. 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.
Additionally, right now the Inflation Reduction Act can offer you a rebate of no more than $8,000, lowering costs for new installation even further. What are you waiting for? Get in touch with the comfort specialists at Bell Air Conditioning Inc to arrange heat pump installation in Temple/Belton.
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 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. There has never been a better time to go green!
How Will the Inflation Reduction Act Affect 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. 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. A rebate covers the entirety of heat pump installation for low-income homeowners and up to 50% percent for moderate-income homeowners.
The rebate is capped at $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
Uncertain which income category you're in or what the average income is in your area? The nonprofit group Rewiring America has an online calculator you can use to 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.
Different from the rebate, which is available at the time of 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
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 the very least, a heat pump must have ENERGY STAR® certification to be eligible for a rebate or tax credit. Additional details are available from our team at Bell Air Conditioning Inc.
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 promptly 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, conversely, must be received after you file taxes.* It decreases the total amount of money you owe to the IRS once you file taxes.
*Consult with a tax professional for full details on how to apply
Reach Out to the Pros at Bell Air Conditioning Inc for Details 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 protect the environment courtesy of tax credits and rebates from the Inflation Reduction Act. Bell Air Conditioning Inc is here to help with all of the details on these discount programs so you receive the greatest savings possible! We're ready to help make your next heat pump installation Temple/Belton a stress-free experience.