Homeowners & The 2022 Inflation Reduction Act
What Is the Inflation Reduction Act?
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.
What Products* Qualify for Rebates?
|New Heat Pumps||Up to $8,000|
|New Heat Pump Water Heaters||Up to $1,750|
|Electrical Panel Upgrades||Up to $4,000|
|Electrical Wiring Improvements||Up to $2,500|
|Insulation, Air Duct Sealing & Ventilation||Up to $1,600|
*Products must quality as high efficiency and may vary from state to state. Individual states may have differing requirements for which products qualify.
When Do These Rebates Start?
Rebates start December 31, 2022 and are scheduled to run through September 30, 2031.
Who Qualifies for Rebates?
Rebate qualification is based on household incomes as presented by the Department of Housing and Urban Development (HUD). Search your median area income here: https://www.huduser.gov/portal/datasets/il.html
Households making less than 80% of their area’s median income (as determined by HUD) could see up to100% in rebates while households who earn between 80% to 150% of the area’s median income are eligible for 50% of the rebate amounts. Rebates are capped at $14,000 in total.
How Do I Claim My Rebate?
These rebates were designed to make your energy-efficient purchase as easy as possible. At the time of sale, your Comfort Advisor will advise you of your options. Rebates may vary from state-to-state, and we will provide more information as each state makes their final decision.
What About Tax Credits?
The new act also offers tax credits 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 $1200, begin January 1, 2023, and will be in effect through 2032.
The tax credit will be equal to 30% of the costs for all eligible home improvements made during the year. It also applies to other home improvements including insulation, windows, skylights, exterior doors, roofing, electrical panels and home energy audits.
Where Can I Find More Information?
Head to our main page for more information.