The Inflation Reduction Act (IRA) was signed in August and included legislation to reduce the emissions of greenhouse gasses and move toward cleaner energy. As the most significant federal legislation for climate change and clean energy, the IRA will offer tax credits and rebates to homeowners who make energy-efficient upgrades to their homes, including heating and cooling systems.

If your system is 10 years or older or simply can’t keep up, this is the perfect opportunity to upgrade your equipment to a more efficient setup. Learn more about the IRA and what it means for homeowners with these incentives.

High-Efficiency Electric Home Rebate Program

The High-Efficiency Home Rebate Program (HEEHRA)  is an incentive program for energy-efficient heat pumps. Homeowners can receive a rebate of up to $8000 for an Energy Star-qualified heat pump. The program is available for low and moderate-income households –  eligibility and the rebate amount are based on household income.

Energy Efficient Home Improvement Tax Credit (25C)

The Energy Efficient Home Improvement Tax Credit increases the tax credit limit for installing CEE high-efficiency equipment. Heat pumps, HVAC units, and water heaters are all included in this tax credit. The credit caps are $1,200 for a qualified furnace or air conditioner and $2,000 for a qualified heat pump. The credit cannot be combined with the HEEHRA, but there are no income restrictions.

The IRA will go into effect on the first of next year. Until then, there are still federal incentive programs for energy-efficient heating and cooling equipment – and it might be better to buy now than to wait until January.

The most significant incentive to buy now is the expectation that equipment costs are expected to rise nearly 30% next year in order for manufacturers to meet the new eco-efficiency standards. So those 2023 rebates might not go as far as you’d think. A benefit now is the renewal of the Energy Star® Tax Credit of up to $500 for qualifying high-efficiency heating and cooling systems. So, if your system is on the fritz and you’ve been putting it off, now is a great time to replace your unit while equipment prices are still low.

Schedule an appointment with the highly-trained professionals at Roy’s Plumbing Heating and Cooling online or call us at 716-218-1106… we’ll present you with your options and make recommendations that best fit your family’s needs and budget.

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