Heat pumps are some of the most energy-efficient solutions for year-round comfort in your home. Not only do they save you money on electricity bills, but they also free up valuable space as they’re much smaller than traditional heating and cooling systems.
Additionally, right now the Inflation Reduction Act provides rebates of a maximum of $8,000, making it even more affordable than ever. What are you waiting for? Get in touch with the comfort specialists at GV Heating & Air to arrange heat pump installation in Crystal and Twin Cities.
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 sustainable HVAC systems more affordable.
You can earn both rebates and tax credits after purchasing energy-efficient equipment such as heat pumps. There has never been a better time 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, there are two ways to save money. The program you choose 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 can't exceed $8,000 for both low-income and moderate-income homeowners. It is a point-of-sale rebate, which means it is deducted from the purchase price when you buy the 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
Unsure which income category you fall into or what the median income is where you live? 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 with incomes that exceed what qualifies 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.
Distinct from the rebate, which is accessible right 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 only apply to the purchase and installation of energy-efficient heat pump models.
At minimum, a heat pump must have ENERGY STAR® certification for the rebate or tax credit to apply. Ask for more information from our team at GV Heating & Air.
How Do I Get the Inflation Reduction Act Rebate
For qualifying homeowners, the heat pump rebate in the Inflation Reduction Act can be earned right when you purchase the heat pump. You get it promptly because it is 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, alternatively, must be received after you file taxes.* It lowers the total amount of money owed to the government once you file taxes.
*Consult with a tax professional for full details on how to apply
Contact the Comfort Pros at GV Heating & Air 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 courtesy of tax credits and rebates from the Inflation Reduction Act. GV Heating & Air is happy to help you navigate the details on these discount programs so you get maximum savings! We're ready and able to help make your next heat pump installation Crystal and Twin Cities a seamless experience.