heat pump tax rebates
The Inflation Reduction Act Includes Incentives For Heating And Air Upgrades!
Buying a Heat Pump Could Get You Thousands in
Federal Tax Credits and State Rebates
What We Know About the Inflation Reduction Act
We do not have much information about which units will be included, exactly how much the rebates will be and where the income cut-off will be. So, like you, we will be waiting for the details to be released from the State.
There are also great concerns that creating large rebates will also create even more equipment shortages and even more increased pricing on the qualified equipment once it is fully announced. Potentially driving the price up beyond the actual savings. Especially for people above the Median State Income cut-off.
In order to prevent you from waiting for the unknown. We have put together a great Heat Pump package with instant discounts available today. Please click here for our current Specials. Equipment prices and shortages have been going on for 2 years and this will likely make it worse. Don’t wait.
Ducted Heat Pumps
The Mitsubishi ducted system is quiet but powerful. The air handler provides up to three tons of cooling and heating large zones of your home.
Frequently Asked Questions
If you opt to install a heat pump, you’ll be eligible for a federal tax credit for models that achieve the Consortium for Energy Efficiency’s (CEE) highest tier for efficiency.
This tax credit is good for 30 percent of the total cost of what you paid for your heat pump, including the cost of labor, up to $2,000; and it would be available through the end of 2032.
Beyond the tax incentive, you also could be eligible for up to $1,750 for a heat pump water heater and $8,000 for a heat pump for space heating and cooling. Both incentives would be in the form of a state-administered rebate on any heat pump model. In this case, there are no federal efficiency requirement guidelines beyond the minimum standards required by the Department of Energy.
Any taxpayer would qualify for the federal tax credits. For the tax credit program, the new incentives will apply to equipment installed on January 1, 2023 or later. (A smaller tax credit of up to $300 for a heat pump meeting the CEE’s top tier of efficiency is available for heat pumps installed during 2022.)
If your household income is less than 80 percent of your state’s median household income, you are eligible for 100 percent of the rebates available. So if you spend $10,000 on a heat pump and a heat pump water heater, you could get $9,750 back, depending on the specifics of your state’s rebate program.
· If your household income is 80 percent to 150 percent of your state’s median income, you are eligible for 50 percent of the rebates available. So for a $10,000 heat pump and heat pump water heater, you could get $4,875 back, depending on specifics.
· If your household income is more than 150 percent of your state’s median income, you are not eligible for these rebates.