How to Secure Your Rebate for a New, High-Efficiency Heat Pump in 2023

March 23, 2023

Heat pumps are considered some of the most energy-efficient solutions for keeping your home cool in summer and warm in winter. Not only do they help lower your monthly electricity bill, but they're also more compact and easier to install than conventional heating and cooling systems.

What's more, right now the Inflation Reduction Act can offer you a rebate of no more than $8,000, making it even more affordable than ever. So why wait? Get in touch with the comfort specialists at Gopher Heating and Air Conditioning to arrange heat pump installation in Savage.

What Is the Inflation Reduction Act

The Inflation Reduction Act of 2022 intends to reduce inflation's impact on the country. An increasingly popular strategy is funding green technology and making efficient, eco-friendly home improvements more affordable.

You can earn these rebates and tax credits when you purchase energy-efficient upgrades including heat pumps. Now's the perfect time to go green!

How Will the Inflation Reduction Act Impact Me?

The Inflation Reduction Act keeps utility costs lower by making heat pumps and other energy-efficient home upgrades more affordable. It does this through a combination 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 it is deducted from the purchase price when you buy the heat pump.

The income criteria are:

  • Low Income: Less than 80% of the area median income
  • Moderate Income: 80-150% of the area median income

Not sure which income category you fall into or what the median income is where you live? The nonprofit group Rewiring America has an online calculator you can use to find out. All you need is your ZIP Code and household income.

What Is the Inflation Reduction Act Heat Pump Tax Credit

For homeowners that make too much to be eligible for the heat pump rebate, there is an Inflation Reduction Act heat pump tax credit. Redeemable for up to 30 percent of the purchase or installation of a heat pump, the heat pump tax credit is worth a maximum of $2,000.

Different from the rebate, which is available at the time of purchase, the tax credit is claimed when you do your taxes.* Don't lose 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 must have ENERGY STAR® certification for eligibility for the rebate or tax credit. Additional details are available from our team at Gopher Heating and Air Conditioning.

How Do I Get the Inflation Reduction Act Rebate

If you are an eligible homeowner, the heat pump rebate in the Inflation Reduction Act can be earned right when you purchase the heat pump. You get it straightaway because it is deducted from the price of purchase and installation of the heat pump. You don't have to send in a proof of purchase or wait for a rebate to come later.

The Inflation Reduction Act heat pump tax credit, alternatively, must be received after you file taxes.* It reduces the total amount of money you owe to the IRS once you file taxes.

*Consult with a tax professional for full details on how to apply

Call Your Local Pros at Gopher Heating and Air Conditioning for More Information About the Inflation Reduction Act Heat Pump Rebate and Tax Credit

Thanks to a high-efficiency heat pump, you can save money and protect the environment thanks to tax credits and rebates from the Inflation Reduction Act. Gopher Heating and Air Conditioning is here to help with all of the details on these discount programs so you receive the greatest savings possible! Our certified team is ready to help make your next heat pump installation Savage a seamless experience.