Heat pumps are some of the most energy-efficient solutions for year-round comfort in your home. Not only do they save you money on electricity bills, but they can help minimize strain on any other heating and cooling systems.
What's more, right now the Inflation Reduction Act provides rebates of a maximum of $8,000, making new installation even more affordable. What are you waiting for? Get in touch with the comfort specialists at Three Rivers Heating & Cooling to schedule your heat pump installation in Portland.
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 efficient, eco-friendly home improvements more affordable.
You can earn both rebates and tax credits after purchasing energy-efficient upgrades including heat pumps. Now's the perfect time to go green!
How Will the Inflation Reduction Act Influence My Energy Costs
The Inflation Reduction Act affects you and other homeowners by making heat pumps and other energy-efficient home upgrades more affordable. It does that in the form of rebates and tax credits.
Regarding the Inflation Reduction Act heat pump rebates and tax credits, there are two ways to save money. The program you choose 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 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 is capped at $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 conditions are:
- Low Income: Less than 80% of the area median income
- Moderate Income: 80-150% of the area median income
Unsure which income category applies to you or what the typical income for your community is? The nonprofit group Rewiring America has an online calculator you can use to find out. Just 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. Along with the ability to redeem the credit for up to 30 percent of the purchase or installation of a heat pump, the heat pump tax credit is worth no more than $2,000.
Distinct from the rebate, which is available at the time of purchase, the tax credit is applied as you file your taxes.* Keep 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
Which Heat Pumps Are Eligible for the Inflation Reduction Act
The Inflation Reduction Act heat pump tax credits and rebates are only accessible after the purchase and installation of energy-efficient heat pump models.
At minimum, a heat pump needs to have ENERGY STAR® certification for eligibility for the rebate or tax credit. Additional details are available from our team at Three Rivers Heating & Cooling.
How Do I Get the Inflation Reduction Act Rebate
For qualifying homeowners, the heat pump rebate in the Inflation Reduction Act can be earned after purchasing the heat pump. You get it right away since it's 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, alternatively, is something you redeem on your taxes.* It lowers the total amount of money you owe to the IRS after you've finished filing taxes.
*Consult with a tax professional for full details on how to apply
Contact the Comfort Pros at Three Rivers Heating & Cooling for More Information 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 using tax credits and rebates from the Inflation Reduction Act. Three Rivers Heating & Cooling is happy to help you navigate the details on these discount programs so you get maximum savings! Our certified team is ready to help make your next heat pump installation Portland a smooth and easy experience.