Heat pumps have been hailed as one 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 it even more affordable than ever. So why wait? Contact the experts at Titan Heating & Air Conditioning to schedule your heat pump installation in Central Point.
What Is the Inflation Reduction Act
The Inflation Reduction Act of 2022 intends to reduce inflation's impact on the country. One potential strategy is funding green technology and making high-efficiency utility equipment and appliances more affordable.
Homeowners can benefit from major rebates and tax credits when they purchase energy-efficient equipment such as heat pumps. Now is a great opportunity to go green!
How Will the Inflation Reduction Act Influence My Energy Costs
The Inflation Reduction Act helps lower residential energy costs by making heat pumps and other energy-efficient home upgrades more affordable. It does that by recouping costs through rebates and tax credits.
Regarding 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 available from the Inflation Reduction Act is for low-income and moderate-income homeowners. Your rebate can cover the entire 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 criteria are:
- Low Income: Less than 80% of the area median income
- Moderate Income: 80-150% of the area median income
Uncertain 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. All you need is 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 a maximum of $2,000.
Unlike 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
Which Heat Pumps Are Eligible 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. Ask for more information from our team at Titan Heating & Air Conditioning.
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 right away since it's 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, on the other hand, must be redeemed on your taxes.* It decreases the total amount of money you owe to the IRS after you've finished filing taxes.
*Consult with a tax professional for full details on how to apply
Call Your Local Pros at Titan Heating & Air Conditioning 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. Titan Heating & Air Conditioning is here to help with all of 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 Central Point a smooth and easy experience.