Great Rebates & Tax Credits Are Available Through…
The 2022 Inflation Reduction Act
There has been a great deal of buzz regarding the Inflation Reduction Act of 2022—a bill that was signed into action by President Biden in August 2022. But what does it mean for you and your family? It means you can save money!
Understanding the New Law
The Inflation Reduction Act of 2022 is a new law that was created to help reduce energy costs and make completing home improvements more affordable. The act, which offers new rebates and tax credits, allows homeowners to save thousands of dollars when they purchase a high-efficiency HVAC system, water heater, electrical panel or upgrade their wiring and insulation.
Rebate qualification is based on household incomes as presented by the Department of Housing and Urban Development (HUD). Search your median area income on the HUD website.
Households making less than 80% of their area’s median income (as determined by HUD) could see up to 100% in rebates while households who earn between 80% to 150% of their area’s median income are eligible for 50% of the rebate amounts. Rebates are capped at $14,000 per household. To get an estimate regarding the amount of money you could save, visit the Rewiring America savings calculator for more information.
Eligible Home Products
The following products qualify for rebates:
- New heat pumps, save up to $8,000
- New heat pump water heaters, save up to $1,750
- Electrical panel upgrades, save up to $4,000
- Electrical wiring improvements, save up to $2,500
- Insulation, air duct sealing & ventilation, save up to $1,600
(NOTE: All products must qualify as high efficiency and may vary from state to state.)
What is a Heat Pump?
In milder climates where temperatures don’t typically dip below 25 degrees, many homeowners rely on heat pumps as a means of heating and cooling their homes. This energy-efficient, reliable system is called a “heat pump” because its main job is to transfer heat in or out of your home, depending on the season. For example, in the summer your heat pump will push warm air from the inside to the outside to keep your indoors cool. Then in the winter season it transfers air from outside and warms it, so you stay super snug.
Rebates Start This Year!
Ask your Comfort Advisor at the time of sale about your rebate options! Remember, rebates may vary, and different states may have differing requirements for qualifying products. We anticipate that more information for each state’s rebates will be revealed as 2023 unfolds. Rebates will begin December 31, 2022 and run through September 30, 2031.
Tax Credit Information
Tax credits are also an important part of the Inflation Reduction Act. Tax credits are available for home improvements that include the installation of energy efficient heat pumps, heat pump water heaters and insulation improvements. The new tax credits, which increase in annual limits from $500 to $2,000, begin January 1, 2023, and will be in effect through 2032.
Is There a Catch?
The only catch here is big savings when you take advantage of a rebate or a tax credit. Homeowners can “go greener” and make their homes more comfortable and energy efficient while securing tremendous cost savings.
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