The Inflation Reduction Act Makes Energy Efficient Upgrades Affordable
The Inflation Reduction Act hopes to make energy-efficient upgrades affordable to homeowners across the country, offering tax credits and rebates on air conditioners, heaters, and heat pumps that save energy.
Here, homeowners can learn about the Inflation Reduction Act, how it can make HVAC systems more affordable, and the benefits of installing a new energy-efficient system.
What is the Inflation Reduction Act? What Does it Mean for Homeowners?
The Inflation Reduction Act is an initiative that will invest up to $369 billion in energy security and climate change programs. The High-Efficiency Electric Home Rebate Act (HEEHRA) is part of this legislation.
Here’s what homeowners need to know about these programs regarding HVAC systems:
- Households can get discounts on installing new HVAC systems, granted they meet specific requirements.
- The act intends to fight climate change by reducing the emissions homes and businesses create.
- Certain low-income households can get heaters for free.
So, What Are the Requirements to Get Tax Credits and Rebates?
The High-Efficiency Electric Home Rebate Act (HEEHRA) is an essential component of the Inflation Reduction Act because it is one of the parts where homeowners can get the most savings. It provides a rebate to eligible homeowners to promote the adoption of high-efficiency electric appliances.
Specifically, the HEEHRA offers rebates for purchasing and installing certain energy-efficient electric appliances, such as air conditioners, heat pumps, and furnaces. The rebates are provided on a sliding scale, depending on the type of system and efficiency. In addition, eligible homeowners may receive additional funding for energy-efficient home improvements. For example:
- If a household makes less than 80 percent of the area median income (AMI), it could cover the cost of purchasing and installing a heat pump.
- If a household makes 81 percent to 150 percent of the AMI, it can get the cost and installation of a new heat pump covered up to 50 percent.
- If a household makes more than 150 percent of the AMI, the Act offers a 30 percent tax credit (up to $2,000) on a new heat pump.
The Benefits of Upgrading an HVAC System
There are countless benefits to upgrading or getting a new heat pump or HVAC system, including:
- Saving money: Nobody wants costly energy bills each month. By opting for a new energy-efficient HVAC system, homeowners can see a difference in their heating and cooling costs.
- Improved property value: New homeowners want residences that have updated appliances. If someone decides to put their house on the market, and it has energy-efficient appliances, they could factor that into their asking price.
- Peace of mind: The older certain appliances get, the more likely they are to break down. Homeowners with newer appliances can rest easy knowing they won’t have to deal with wear-and-tear-related problems for a long time.
About Hancock & Son Plumbing, Heating, and Air Conditioning
Hancock & Son Plumbing, Heating, and Air Conditioning is a locally owned and operated company serving Salisbury, MD, and the surrounding areas. They provide honest pricing, 24-hour emergency services, and expert workmanship. Call them today for AC, heat pump, or heater installation in Salisbury, MD.
