If you’re considering a home upgrade that promises both comfort and energy efficiency, now is the perfect time. The Inflation Reduction Act of 2022 introduced exciting financial incentives for energy-conscious Americans. In this blog, we’ll explore how you can benefit from these incentives and make your home more comfortable and environmentally friendly with a super-efficient heat pump HVAC system.
How Much Is the Heat Pump Tax Credit? Quick Cheat Sheet:
HVAC System Heat Pump Tax Credits:
– 2022: Up to $300
– 2023 through 2032: 30% of your project costs, up to $2,000, with an additional $600 tax credit for electric panel upgrades (if needed).
Upgrade and Save with Super-Efficient Heat Pumps:
Modern heat pumps are not only reliable in cold weather but also outperform fossil-fuel heating in the cold. If you installed a qualifying heat pump HVAC system or water heater in 2022 or earlier, you may be eligible for a tax credit of up to $300. However, starting in 2023, you could be eligible for a tax credit of up to $2,000 under the new tax guidelines included in the Inflation Reduction Act.
What Heat Pump Rebates Are Included in the Inflation Reduction Act?
In addition to tax credits, the Act offers heat pump rebates based on factors like annual household income and energy savings. There are two primary rebate programs:
- HOMES Rebate Program: Not income-based, with two pathways: measured savings and modeled savings.
- HEEHRA Rebate Program: For low- to moderate-income households, offering substantial rebates.
How Much Are Federal Heat Pump Rebates? Quick Cheat Sheet:
Low- to Moderate-Income Households:
– Up to $8,000 for an electric heat pump HVAC system.
– Up to $1,750 for a heat pump water heater.
– Up to $4,000 for an electric panel upgrade (if needed).
– Up to $2,500 for electric wiring upgrades (if needed).
Non-Income-Based Rebates:
– Eligibility for the HOMES rebate program is not based on income, but guidelines are state-specific.
– The HEEHRA program will not offer rebates retroactively for 2023 home energy upgrades.
What Heat Pumps Qualify for Federal Tax Credits?
Qualification for federal tax credits depends on the date of your heat pump installation. We provide details for both 2022 and 2023 heat pump tax credits.
How Do You Get the Heat Pump Tax Credit?
To maximize your heat pump tax credit, you’ll need to owe at least $2,000 in taxes. Reporting your heat pump home energy upgrades and providing the required documentation are essential. Working with Sealed ensures you have all the necessary paperwork.
How to Get Heat Pump Rebates:
States oversee the programs and applications for heat pump rebates, which may not be available until 2024. Rebates differ from tax credits and may be obtained at the time of purchase, installation, or post-purchase.
Qualify for Heat Pump Rebates Under the Home Electrification and Appliance Rebate Program:
To qualify for federal rebates under the income-based program, you’ll need to meet your state’s low- to moderate-income requirements, install an ENERGY STAR-certified appliance, and follow state-specific guidance.
Upgrade Your Home with Always On Green Home:
Always On Green Home offers hassle-free, energy-efficient heat pump HVAC systems upgrades. Flexible payment options and weatherization upgrades to optimize your heat pump are available if your house qualifies.
Upgrade your home with super-efficient heat pumps and take advantage of the Inflation Reduction Act’s incentives. Schedule an appointment today to make your home more comfortable and energy-efficient.