Heat pumps have been hailed as one of the most energy-efficient solutions for keeping your home cool in summer and warm in winter. Not only do they help lower your monthly electricity bill, but they're also more compact and easier to install than conventional heating and cooling systems.
In addition, right now the Inflation Reduction Act can offer you a rebate of no more than $8,000, making new installation even more affordable. What are you waiting for? Contact the experts at Comfort Zone, LLC to schedule your heat pump installation in Cape Coral.
What Is the Inflation Reduction Act
The Inflation Reduction Act of 2022 was created to reduce the impact of inflation on the country. One potential strategy is 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. There has never been a better time to go green!
How Will the Inflation Reduction Act Affect Me
The Inflation Reduction Act keeps utility costs lower by making heat pumps and other energy-efficient home upgrades more affordable. It does that in the form of rebates and tax credits.
Regarding the Inflation Reduction Act heat pump rebates and tax credits, you have two main options for saving money. 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 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 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 guidelines are:
- Low Income: Less than 80% of the area median income
- Moderate Income: 80-150% of the area median income
Uncertain 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 whose income is too high to qualify 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.
Unlike the rebate, which is used immediately during your initial purchase, the tax credit is received once you have filed 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 Models of Heat Pumps Qualify for the Inflation Reduction Act
The Inflation Reduction Act heat pump tax credits and rebates are only accessible after the purchase and installation of energy-efficient heat pump models.
At minimum, a heat pump must demonstrate ENERGY STAR® certification for the rebate or tax credit to apply. Additional details are available from our team at Comfort Zone, LLC.
How Do I Get the Inflation Reduction Act Rebate
If you are an eligible homeowner, the heat pump rebate in the Inflation Reduction Act is available when you purchase the heat pump. You get it straightaway 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 lowers 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
Contact the Comfort Pros at Comfort Zone, LLC for More Information 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 do your part for the environment courtesy of tax credits and rebates from the Inflation Reduction Act. Comfort Zone, LLC 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 Cape Coral a stress-free experience.