How to Secure Your Rebate for a New Heat Pump in 2023

March 23, 2023

Heat pumps are some 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.

Additionally, right now the Inflation Reduction Act provides rebates of a maximum of $8,000, making it even more affordable than ever. What are you waiting for? Get in touch with the comfort specialists at Custom Air Systems Inc to request heat pump installation in Port St. Lucie.

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 efficient, eco-friendly home improvements more affordable.

Homeowners can benefit from major rebates and tax credits when they 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 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. 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 available from 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 you subtract the rebate from the initial cost of a new heat pump.

The income criteria are:

  • Low Income: Less than 80% of the area median income
  • Moderate Income: 80-150% of the area median income

Unsure which income category you're in or what the average income is in your area? 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 with incomes that exceed what qualifies 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 a maximum of $2,000.

Different from the rebate, which is accessible right at the time of purchase, the tax credit is applied as you file 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 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 Custom Air Systems Inc.

How Do I Get the Inflation Reduction Act Rebate

If you are an eligible homeowner, the heat pump rebate in the Inflation Reduction Act can be earned right 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. There’s no need to send in a proof of purchase or wait for a rebate to come later.

The Inflation Reduction Act heat pump tax credit, conversely, must be redeemed on your taxes.* It lowers 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 Custom Air Systems Inc for Details About the Inflation Reduction Act Heat Pump Rebate and Tax Credit

With a high-efficiency heat pump, you can save money and do your part for the environment thanks to tax credits and rebates from the Inflation Reduction Act. Custom Air Systems Inc can help with the specifics on these discount programs so you receive the greatest savings possible! We're ready and able to help make your next heat pump installation Port St. Lucie a seamless experience.