In 2023, many people in the US will be able to receive a free heat pump. How so? You can receive tax deductions or rebates from the Inflation Reduction Act (IRA) for the purchase of a heat pump. This program, called the High-Efficiency Electric Home Rebate Act (HEEHRA), provides point-of-sale refunds on any type of heat pump that costs up to $8,000. This means that the actual rebate amount is automatically deducted from the purchase price, eliminating the need for a refund.
The exact amount of each rebate will depend on your household’s income. If your household income is less than 80% of your area’s median income, you can receive a maximum rebate of up to $8,000. On the other hand, if your household income is over 81-150% of the median income, you can get a partial rebate of up to 50%. If your household income goes over 150% of the median income in your area, you may still qualify for a tax credit of up to two thousand dollars.
The HEERHA rebates can be beneficial to low-income homeowners. For instance, according to HomeAdvisor, a heat pump can cost about $5,792. In most circumstances, low-income families can get a new heat pump for no cost. The average middle-income household can save around $2,896 on a new heat pump. On the other hand, upper-middle-income families can expect to receive a tax credit of around $1,737.60.
Why Heat Pumps?
A heat pump can provide heat, humidity control and air conditioning– with many advantages. They’re more energy-efficient than traditional cooling and heating methods. A heat pump uses energy that comes from various sources such as water, air, and ground. This allows you, as a homeowner, to cut down on your carbon footprint and combat climate change. Unlike traditional heating methods that rely on fossil fuels to produce heat, heat pumps use renewable energy sources. A heat pump doesn’t generate carbon monoxide, which significantly improves home safety and air quality. Unlike other air conditioning units, a heat pump compressor is also quieter. This makes it ideal for use near bedrooms, decks, or patio.
- Reduces carbon emissions
- Less maintenance than combustion system
- Lower running costs
- Long life-span
Why Choose Air Nerds?
Air Nerds will be able to help you navigate HEEHRA, ensuring you get the most from the rebate program. The Department of Energy is expected to issue guidelines in Spring 2023. Until then, you can still get a $300 tax credit for a heat pump that meets the highest efficiency standards of the Consortium for Energy Efficiency (CEE). If you’re thinking about replacing your furnace or air conditioner, the HEEHRA program can save you a ton of money! Here at, Air Nerds we will help you choose and install which system is best for you and your home. We are here to help you navigate this program, while providing you with a system that will save you money.
If you’re interested in learning more or taking advantage of HEEHRA, contact Air Nerds today!