Heat pumps are some of the most energy-efficient solutions for keeping your home comfortable all year-round. Not only do they reduce your electricity costs, but they can help minimize strain on any other heating and cooling systems.
In addition, right now the Inflation Reduction Act can offer you a rebate of no more than $8,000, making it even more affordable than ever. So don't wait! Get in touch with the comfort specialists at Service Max Heating & Air Conditioning to schedule your heat pump installation in Arlington.
What Is the Inflation Reduction Act
The Inflation Reduction Act of 2022 was created to reduce the impact of inflation on the country. One of the ways it does that is by funding green technology and making efficient, eco-friendly home improvements 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 Affect 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.
When considering 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. 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 deduct the rebate from the initial purchase price of the heat pump.
The income guidelines 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 a maximum of $2,000.
Distinct from 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 the very least, a heat pump must demonstrate ENERGY STAR® certification for the rebate or tax credit to apply. You can get all the details from our team at Service Max Heating & Air Conditioning.
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 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 to the IRS once you file taxes.
*Consult with a tax professional for full details on how to apply
Contact the Comfort Pros at Service Max Heating & Air Conditioning 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 using tax credits and rebates from the Inflation Reduction Act. Service Max Heating & Air Conditioning can help with the specifics on these discount programs so you can enjoy more savings! We're ready and able to help make your next heat pump installation Arlington a stress-free experience.