The Favorable Incentives of the Inflation Reduction Act
Signed into law at the end of the summer of 2022, the Inflation Reduction Act (IRA) aims for climate change by incentivizing energy-efficient upgrades. There are certain provisions included in the IRA that help homeowners upgrade their home's HVAC system. These provisions cover certain air conditioners, heaters, and heat pumps. The exact amount of the rebates varies depending on household income and the type of upgrades enacted. Learn why now is the best time to upgrade the home's HVAC system.
The Inflation Reduction Act: What Is It?
As the name suggests, the Inflation Reduction Act, among other things, aims to reduce inflation by helping homeowners make useful upgrades to their homes. These upgrades will not only help reduce a home's carbon footprint but also help homeowners save a significant amount of money on energy costs. This is because the incentives are only good for certain energy-efficient systems.
The biggest tax credits and rebates come along with heat pumps. Heat pump technology has advanced in recent years, allowing these systems to be used in a wider range of climates. Heat pumps remove heat from the house in summer by pulling it out of the air inside. In the winter, they do something similar, pulling heat from the air outside and transferring it inside. Thanks to technological advancements, those living in cold climates can benefit from heat pumps. However, there are also incentives for more "traditional" HVAC systems.
Which Systems Qualify Under the Act?
Certain Energy-Star-certified air conditioning and heating systems qualify for tax credits under the Energy-Efficient Home Improvement tax credit. Homeowners can save up to $600 on these systems, with a total cap of $1,200 for a furnace and an air conditioner. These credits aren't associated with household income. However, they can't be combined with the rebate program that provides significant savings for heat pump installation.
The High-Efficiency Electric Home Rebate Program allows up to a $2,000 rebate on heat pump installation. Since heat pumps are more energy-efficient than air conditioners and furnaces, they get bigger rebates to help incentivize homeowners to use this increasingly popular technology.
Why Take Advantage and Upgrade Now?
With the Inflation Reduction Act, 2023 is an ideal year for installing a new air conditioner, furnace, or heat pump. Those homeowners with struggling systems may just want to take advantage of these credits/rebates and replace their failing systems instead of paying for repairs. They can save money on installation and enjoy the benefits of these more energy-efficient systems, which will help them save money on energy bills in the future.
Heat pumps are especially attractive because they are quieter and occupy less space than air conditioners and furnaces. They also have the added benefit of being safer since they don't operate on gas. Heat pumps keep the home's air clean while controlling the humidity, just like an air conditioner. In short, homeowners have plenty of reasons to get the energy-efficient upgrades they've been putting off for months or years!
About All Services
All Services have been proudly serving Crown Point, IN, since 2006. They are fully licensed, bonded, and insured, so homeowners can rest easy. They offer flat-rate pricing and a clean guarantee, so homeowners won't even be able to tell they were ever there! Contact All Services for heat pump installation in Crown Point, IN today.