The 2022 Inflation Reduction Act, passed in August, focuses on reducing climate-warming emissions. What does this mean for homeowners? The act includes several incentives for trading in their fossil-fueled appliances and switching to energy-efficient upgrades. This means there’s never been a better time to upgrade your home comfort system with Air Specialist A/C Heating Plumbing & More. While the country and individual states iron out the details of the new legislation, Air Specialist can help you select a system that will save you money through tax rebates and other incentives.
Tax credits for heat pumps
When it comes to heating and cooling your home, most people rely on gas, electricity, or a combination of both. Gas-powered furnaces may be paired with electricity-powered air conditioners, for instance, or your home may rely on an all-electric heat pump to cool things down in the hot months and warm up those cooler winter days. The act is designed to reduce our dependence on fossil fuels like natural gas by encouraging more purchases of electricity-powered appliances.
A heat pump, which uses electricity to work as an air conditioner and a furnace, can be a more expensive investment than a gas-powered furnace. Thanks to the Inflation Reduction Act, though, homeowners may be eligible for up to a $2,000 credit on their tax bill if they purchase electric-powered appliances like a heat pump rather than a gas-powered furnace. Homeowners may also notice savings over time because heat pumps tend to be cheaper to run than gas-powered appliances.
The Inflation Deduction Act establishes new grant programs that may significantly reduce the cost of HVAC installation. This program will be administered by individual states, and many of the details have yet to be worked out. However, the act sets aside $8.8 billion for grants that can cover all or some of the cost of retrofitting homes with energy-efficient insulation and HVAC installations for low to moderate-income households. Qualified households may be eligible for rebates of up to $1,750 for a heat pump water heater and $8,000 for heat pumps. Again, these rebates are dependent upon household income.
When should I upgrade?
With so many details yet to be announced, it may be tempting to take a wait-and-see approach to upgrade your home comfort system. But waiting may cost you money in the long run. Prices are expected to rise in 2023, so an investment now may offset any potential tax credit savings. Air Specialist also offers several discounts throughout the year to save you even more of your hard-earned income.
Is your HVAC system 10 years old or older? Is it time for an upgrade? Are you confused about the new laws and how they affect your household? Air Specialist is here to make sure you get the right information to make the best decision for your family and budget. Schedule an appointment now by reaching out to Air Specialist at (713) 481-1305 or contact us online. We’ll explain all of your options so you can be confident knowing you have ethical experts on your side.