2022 Inflation Reduction Act - Heat Pumps
What is IRA (Inflation Reduction Act)?
The Inflation Reduction Act of 2022 (IRA) opens the door for homeowners across the United States to update their heating and cooling systems to select high-efficiency solutions. This Act is designed to accelerate the adoption of all-electric HVAC equipment and lower utility bills for homes and businesses.
There is no better time to think about upgrading your heating and cooling system. The Inflation Reduction Act of 2022 provides tax credits and point-of-sale rebates that can equal thousands of dollars for the installation of high-efficiency HVAC equipment.
Up to $8,000 for all-electric ENERGY STAR heat pumps to eligible homeowners and other qualifying individuals.
The Inflation Reduction Act Incentives provides tax credits for homeowners replacing aging equipment with high-efficiency HVAC systems!
Heat pump installations receive an unprecedented incentive package to support converting homes to all-electric, high-efficiency solutions. A high-efficiency heat pump may help improve your indoor comfort, and upgrading from your existing lower-efficiency HVAC system can lead to energy bill savings for years to come.
To determine your area’s median income, Fannie Mae offers a tool you can use. If your household income is 80% or below the median income, you can receive the maximum rebate, covering the entire cost of a new heat pump up to $8,000. If your household income falls between 81-150% of the median income, you can get a rebate that covers up to 50% of the heat pump’s cost.
For homeowners whose household income exceeds 150% of the median income, there is still hope. They can qualify for a 30% tax credit of up to $2,000 on new heat pumps.
The HEERHA heat pump rebates are particularly valuable for low-income homeowners. According to HomeAdvisor, the average cost of a heat pump is $5,792. This means that in many cases, low-income households can obtain a new heat pump for free.
On average, middle-income households can save $2,896 on a new heat pump, while above-middle-income households can receive an average tax credit of $1,737.60.