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 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 provides rebates of a maximum of $8,000, lowering costs for new installation even further. What are you waiting for? Contact the experts at North Mechanical Heating and Cooling to request heat pump installation in Payson.
What Is the Inflation Reduction Act
The Inflation Reduction Act of 2022 intends to reduce inflation's impact on the country. An increasingly popular strategy is funding green technology and making efficient, eco-friendly home improvements more affordable.
You can earn these rebates and tax credits when you purchase energy-efficient upgrades including heat pumps. Now is a great opportunity to go green!
How Will the Inflation Reduction Act Affect Me
The Inflation Reduction Act helps lower residential energy costs by making heat pumps and other energy-efficient home upgrades more affordable. It does this through a combination of rebates and tax credits.
When considering the Inflation Reduction Act heat pump rebates and tax credits, you have two options for lowering costs. 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. 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 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
Not sure 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. You only need to provide 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 no more than $2,000.
Different from the rebate, which is used immediately during your initial 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
What Heat Pumps Qualify 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 demonstrate ENERGY STAR® certification to be eligible for a rebate or tax credit. Additional details are available from our team at North Mechanical Heating and Cooling.
How Do I Get the Inflation Reduction Act Rebate
For homeowners who qualify, the heat pump rebate in the Inflation Reduction Act is available when you purchase 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, on the other hand, is something you redeem 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
Contact the Comfort Pros at North Mechanical Heating and Cooling to Learn More 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 thanks to tax credits and rebates from the Inflation Reduction Act. North Mechanical Heating and Cooling is here to help with all of the details on these discount programs so you get maximum savings! Our certified team is ready to help make your next heat pump installation Payson a seamless experience.