Heat pumps have been hailed as one 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 more, right now the Inflation Reduction Act offers a rebate of up to $8,000, lowering costs for new installation even further. What are you waiting for? Contact the experts at Woody's Sudden Service Inc to schedule your heat pump installation in Manassas.
What Is the Inflation Reduction Act
The Inflation Reduction Act of 2022 was created to reduce the impact of inflation on the country. One of the ways it does that is by funding green technology and making sustainable HVAC systems more affordable.
You can earn these rebates and tax credits when you purchase energy-efficient equipment such as heat pumps. Now's the perfect time to go green!
How Will the Inflation Reduction Act Influence My Energy Costs
The Inflation Reduction Act keeps utility costs lower 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, there are two ways to save money. Which program you use is dependent 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. The rebate covers 100 percent of the cost of heat pump installation for low-income homeowners and up to 50% percent for moderate-income homeowners.
The rebate is capped at $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 conditions 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're in or what the average income is in your area? The nonprofit group Rewiring America has an online calculator you can use to find out. You only need to provide 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. 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 claimed when you do your taxes.* Don't lose 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
What Heat Pumps Qualify for the Inflation Reduction Act
The Inflation Reduction Act heat pump tax credits and rebates only apply to the purchase and installation of energy-efficient heat pump models.
At the very least, a heat pump needs to have ENERGY STAR® certification for the rebate or tax credit to apply. Ask for more information from our team at Woody's Sudden Service Inc.
How Do I Get the Inflation Reduction Act Rebate
For qualifying homeowners, the heat pump rebate in the Inflation Reduction Act can be earned right when you purchase the heat pump. You get it right away since it's deducted from the price of purchase and installation of the heat pump. You don't have to send in a proof of purchase or wait for a rebate to come later.
The Inflation Reduction Act heat pump tax credit, alternatively, must be received after you file taxes.* It decreases the total amount of money owed to the government when you file your taxes.
*Consult with a tax professional for full details on how to apply
Reach Out to the Pros at Woody's Sudden Service Inc for More Information About the Inflation Reduction Act Heat Pump Rebate and Tax Credit
Thanks to a high-efficiency heat pump, you can save money and protect the environment courtesy of tax credits and rebates from the Inflation Reduction Act. Woody's Sudden Service Inc is happy to help you navigate the details on these discount programs so you can enjoy more savings! Our certified team is ready to help make your next heat pump installation Manassas a stress-free experience.