The Inflation Reduction Act and What It Means for HVAC Upgrades
It’s the season of tax preparation, and everyone is concerned about finding all the possible ways to get the most out of their tax return. A homeowner might never guess that installing a new heat pump or gas furnace may qualify them for a tax credit, but it is true. This is all due to a recently passed bill to help with the rising cost of living called the Inflation Reduction Act.
The Inflation Reduction Act and What It Is
While the Inflation Reduction Act (or IRA2022) includes several ways to reduce costs for the average person, the most talked about part of the law relates to ecologically friendly energy consumption practices. Electric vehicle purchases and new energy-efficient HVAC systems top the items involved in these tax credits and rebates. These purchases only qualify if purchased or installed in 2023.
Heating and Air Conditioning Systems that Qualify for the IRA
Not just any new HVAC installation will qualify for money allocated by the Inflation Reduction Act. The systems must be within certain energy efficiency parameters to cut. The simplest way to choose a system within parameters is to ensure a good energy star rating. Some of the tax credits and rebates that are available include:
- $600 for gas heaters or furnaces
- $600 for air conditioning systems
- $2000 for heat pumps
- Manufacturers also have straight-to-market rebates in place for heat pumps and other systems
Why Homeowners Should Upgrade
Just because the Inflation Reduction Act incentivizes installing energy-efficient systems like heat pumps doesn’t mean it is the only reason to install a new heat pump. While a household is saving on their taxes, they can also be getting the following benefits:
- Energy Bills: The new system will consume less energy, making energy bills less expensive. Tax credits are money in the bank, but the savings from a heat pump can be a regular monthly occurrence.
- Quiet: Heat pumps are quieter than traditional HVAC systems and quieter than window units.
- Temperature Zones: A heat pump with ductless mini splits allows different rooms to be set at different temperatures. This is not only a feature that can save money in less frequently used areas of the home, but it makes a home more customizable for each person’s comfort and activity level.
- Indoor Air Quality: Heat pumps with ductless mini splits make it easier to manage indoor air quality than traditional systems that have air ducts as part of the ventilation.
Not all systems are the same regarding energy efficiency, but this is not a decision that a homeowner has to make entirely on their own. A consultation with a professional HVAC technician can get the ball rolling, and homeowners can look forward to their future savings.
About Anderson Heating, Cooling & Plumbing
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