Every so often, it is necessary for homeowners to upgrade their heat pumps. Whether it’s due to old age or operating problems, the time will eventually come when you’ll need to install a new one. With the recent passage of the Inflation Reduction Act, now may be the perfect time to see if you qualify for tax credits that can help offset the cost of upgrading your heat pump. Doc Dancer Heating & Air has more information on how the bill may be able to help you make this important HVAC system update!
What Is the Inflation Reduction Act?
The Inflation Reduction Act is a bill that aims to invest in Inflation and create jobs across the country. One of the ways it does this is by offering tax credits for home upgrades that improve energy efficiency. Upgrades like electric vehicles, electric water heaters, solar panels, and heat pump installations.
Heat Pump Tax Credit
The bill currently offers an air source heat pump tax credit of up to 30% of the cost of a new heat pump installation, with a maximum tax credit of $2,000. This tax credit can be used to offset the cost of upgrading your heat pump, making it more affordable to do so.
To qualify for the tax credits, your heat pump must meet certain efficiency requirements. The heat pump must be ENERGY STAR certified, meaning the unit has a minimum SEER2 (Seasonal Energy Efficiency Ratio) of 15.2 and a minimum HSPF (Heating Seasonal Performance Factor) of 7.8.
High-Efficiency Electric Home Rebate Act
The High-Efficiency Electric Home Rebate Act (HEEHRA), included in the Inflation Reduction Act, is a bill that aims to help homeowners electrify their homes. The bill provides rebates to homeowners who install certain types of electric heat pumps in their homes. These rebates can help to offset the cost of purchasing and installing a new heat pump, making it more affordable for homeowners to upgrade their heating and cooling systems.
The HEEHRA bill provides rebates based on household income. The rebate for installing a qualified heat pump is up to $8,000; the rebate covers 100% of the associated costs of installation up to $8,000 for low-income households, and 50% of costs for moderate-income households.
Talk to Doc Dancer to Upgrade Your HVAC System Today!
The Inflation Reduction Act is a bill that aims to invest in Inflation and create jobs across the country. This bill offers tax credits for certain energy-efficient home upgrades, including electric heat pump installations and it is a great opportunity for homeowners to upgrade their heat pump and improve their home’s energy efficiency while getting some financial help.
At Doc Dancer Heating & Air, we are dedicated to providing our customers with the best heating and cooling solutions available. Our team of certified and experienced technicians can help you navigate the process of upgrading your heat pump and take advantage of the tax credits offered under the Inflation Reduction Act. Contact us today to schedule a consultation and learn more about how we can help you upgrade your heat pump and improve the efficiency of your home.