Heat pumps are some of the most energy-efficient solutions for keeping your home comfortable all year-round. Not only do they save you money on electricity bills, but they're also more compact and easier to install than conventional heating and cooling systems.
What’s even better, right now the Inflation Reduction Act can offer you a rebate of no more than $8,000, making it even more affordable than ever. So don't wait! Call the pros at Bishop Heating & Air Conditioning to schedule your heat pump installation in Bishop.
What Is the Inflation Reduction Act
The Inflation Reduction Act of 2022 was created to reduce the impact of inflation on the country. An increasingly popular strategy is funding green technology and making sustainable HVAC systems more affordable.
You can earn these rebates and tax credits when you purchase energy-efficient upgrades including heat pumps. There has never been a better time to go green!
How Will the Inflation Reduction Act Influence My Energy Costs
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 it comes to 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 can't exceed $8,000 for both low-income and moderate-income homeowners. It is a point-of-sale rebate, which means you deduct the rebate from the initial purchase price of the heat pump.
The income guidelines are:
- Low Income: Less than 80% of the area median income
- Moderate Income: 80-150% of the area median income
Unsure which income category applies to you or what the typical income for your community is? The nonprofit group Rewiring America has an online calculator you can use to find out. Just provide your ZIP Code and household income.
What Is the Inflation Reduction Act Heat Pump Tax Credit
For homeowners that make too much to be eligible for the 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 no more than $2,000.
Different from the rebate, which is available at the time of purchase, the tax credit is received once you have filed your taxes.* Keep 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 the very least, a heat pump must demonstrate ENERGY STAR® certification for eligibility for the rebate or tax credit. You can get all the details from our team at Bishop Heating & Air Conditioning.
How Do I Get the Inflation Reduction Act Rebate
For homeowners who qualify, the heat pump rebate in the Inflation Reduction Act is available 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, on the other hand, must be redeemed on your taxes.* It decreases the total amount of money you owe to the IRS once you file taxes.
*Consult with a tax professional for full details on how to apply
Reach Out to the Pros at Bishop Heating & Air Conditioning for Details About the Inflation Reduction Act Heat Pump Rebate and Tax Credit
With a high-efficiency heat pump, you can save money and protect the environment thanks to tax credits and rebates from the Inflation Reduction Act. Bishop Heating & Air Conditioning can help with the specifics on these discount programs so you can enjoy more savings! We're ready to help make your next heat pump installation Bishop a seamless experience.