Heat pumps are considered some of the most energy-efficient solutions for year-round comfort in your home. Not only do they reduce your electricity costs, but they're also more compact and easier to install than conventional heating and cooling systems.
In addition, right now the Inflation Reduction Act provides rebates of a maximum of $8,000, lowering costs for new installation even further. So don't wait! Call the pros at Dial One Mears Air Conditioning & Heating Inc to request heat pump installation in Phoenix.
What Is the Inflation Reduction Act
The Inflation Reduction Act of 2022 was written in hopes of reducing the effects of inflation on the country. One of the ways it does that is by 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 systems like heat pumps. Now's the perfect time to go green!
How Will the Inflation Reduction Act Influence My Energy Costs
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.
Regarding the Inflation Reduction Act heat pump rebates and tax credits, you have two options for lowering costs. The ideal option depends 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 rebate found 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 has a maximum of $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 conditions are:
- Low Income: Less than 80% of the area median income
- Moderate Income: 80-150% of the area median income
Not sure 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 with incomes that exceed what qualifies for a 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.
Distinct from the rebate, which is available at the time of purchase, the tax credit is received once you have filed 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
Which Heat Pumps Are Eligible for the Inflation Reduction Act
The Inflation Reduction Act heat pump tax credits and rebates can only be used for 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 Dial One Mears Air Conditioning & Heating Inc.
How Do I Get the Inflation Reduction Act Rebate
If you are an eligible homeowner, the heat pump rebate in the Inflation Reduction Act can be earned right when you purchase the heat pump. You get it right away 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, conversely, is something you redeem on your taxes.* It lowers 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 Dial One Mears Air Conditioning & Heating Inc for More Information About the Inflation Reduction Act Heat Pump Rebate and Tax Credit
Thanks to a high-efficiency heat pump, you can save money and do your part for the environment thanks to tax credits and rebates from the Inflation Reduction Act. Dial One Mears Air Conditioning & Heating Inc is happy to help you navigate the details on these discount programs so you can enjoy more savings! We're ready and able to help make your next heat pump installation Phoenix a stress-free experience.