Are you looking to replace your old HVAC system and increase your home's energy efficiency? Installing a heat pump may do just that—and if you live in the United States, you could be eligible for thousands in federal tax credits. This blog post will teach you what you need to know about taking advantage of this incentive. Find out below how to make your home more comfortable at a reduced cost.
Energy Efficiency Incentives in the Inflation Reduction Act of 2022
The Inflation Reduction Act of 2022 provides many incentives to make energy-efficiency upgrades to a home. Homeowners can receive substantial rebates and credits for installing high-efficiency heating, cooling, and water-heating systems. Installing heat pumps comes with the most considerable financial incentives by far.
What Exactly Is a Heat Pump?
A heat pump is an efficient HVAC system that both heats and cools a home in place of a furnace and an air conditioner. Heat pumps operate by using the ambient air temperature outside and either absorbing or releasing heat to the indoors. A heat pump’s main advantage is that it can use much less energy than many types of traditional HVAC systems by “moving” heat instead of generating it.
By using cleaner energy sources (typically electricity), heat pumps may be more sustainable than other HVAC systems. Furthermore, the latest models can perform effectively in even chilly climates.
Recent studies have suggested that heat pumps can offer greater cost-effectiveness when factoring in installation costs over the long term than other heating systems. In some parts of the country, heat pumps are already more affordable to install than other traditional HVAC systems.
What Does the Federal Tax Credit Cover?
The federal tax credit covers up to 30% of qualifying heat pumps' purchase and installation labor costs (up to $2,000). This credit applies to new and existing homes and can be claimed in the same tax year as the purchase was made, starting in 2023 and ending in 2032.
Which Heat Pumps Are Eligible for the Federal Tax Credit?
To qualify for this credit, your heat pump must meet the top-tier efficiency requirements set by the Consortium for Energy Efficiency (CEE), aka. the CEE Advanced Tier.
The tax credit program incentives apply to systems installed on January 1, 2023, and the program will last through the end of 2032. If you installed a heat pump during 2022, you might be eligible for a tax credit of up to $300, as long as your heat pump meets the CEE's highest efficiency tier.
Dallas Air Conditioning and Heating Installation
Now that you know what to look for in an eligible heat pump, the next step is to find a qualified installer. At Rescue Air Heating and Cooling, our certified HVAC specialists can help you choose the right system and take advantage of financial incentives. We have years of experience helping homeowners install energy-efficient heating and cooling systems to make their homes more comfortable at a lower monthly cost.
We are committed to providing the highest quality service and support, so you can rest assured that your HVAC system will be expertly installed and performing at its best.
Contact us today to learn more about our services and how we can help you take advantage of federal incentives for high-efficiency systems: (972) 201-3253.