The cost of HVAC systems may be rising soon! But why, exactly? We’ve got all the relevant information for you and are happy to share:
In August, the U.S. government passed The Inflation Reduction Act (IRA) to reduce greenhouse gas emissions. This Act is the most significant federal legislation addressing climate change – the IRA will invest $369 billion in technologies that improve energy efficiency in the form of rebates and tax credits.
So what does all this mean for homeowners who have been fighting rising energy costs for the last year?
This new law allows homeowners to make energy-efficient home upgrades with the help of rebates and tax credits, including heating and cooling systems. These incentives make it the perfect time to upgrade your HVAC system to a more efficient model.
High-Efficiency Electric Home Rebate Program
The High-Efficiency Electric Home Rebate Program (HEEHRA) is an incentive program for homeowners to make energy-efficient home upgrades. This program provides rebates up to $14,000 per household, including up to an $8,000 point-of-sale rebate for an Energy Star-qualified heat pump. The program is available for low and moderate-income households – eligibility and the rebate amount are based on household income.
Energy Efficient Home Improvement Tax Credit (25C)
Through 2032, The Energy Efficient Home Improvement Tax Credit increases the tax credit limit for installing CEE high-efficiency equipment, like heat pumps, HVAC units, and water heaters. The credit is capped at $1,200 for a qualified furnace or air conditioner and $2,000 for a qualified heat pump. This tax credit cannot be combined with the HEEHRA, but there are no income restrictions with this incentive.
The IRA will go into effect in 2023. Until then, there are still federal incentive programs for energy-efficient heating and cooling equipment – and it might be better to buy now than to wait until January. Equipment costs are expected to rise nearly 30%, so those rebates might not go as far as you’d think.
Our energy-efficient heat pumps qualify for the IRA, meaning you’ll save money on your new equipment now and you’ll see lower energy bills in the future. For questions about the IRA or to schedule an appointment, visit us online or give us a call at 941-751-2642.
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