Heat pumps are some of the most energy-efficient solutions for keeping your home cool in summer and warm in winter. Not only do they save you money on electricity bills, but they also free up valuable space as they’re much smaller than traditional heating and cooling systems.
What’s even better, right now the Inflation Reduction Act can offer you a rebate of no more than $8,000, lowering costs for new installation even further. So why wait? Get in touch with the comfort specialists at Kirkfield Heating & Air Conditioning to request heat pump installation in Winnipeg.
What Is the Inflation Reduction Act
The Inflation Reduction Act of 2022 was written in hopes of reducing the effects of inflation on the country. One of the ways it does that is by funding green technology and making high-efficiency utility equipment and appliances more affordable.
You can earn both rebates and tax credits after purchasing energy-efficient upgrades including heat pumps. There has never been a better time to go green!
How Will the Inflation Reduction Act Affect Me
The Inflation Reduction Act helps lower residential energy costs by making heat pumps and other energy-efficient home upgrades more affordable. It does that by recouping costs through rebates and tax credits.
Regarding the Inflation Reduction Act heat pump rebates and tax credits, you have two main options for saving money. The ideal option depends 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. Your rebate can cover the entire cost of heat pump installation for low-income homeowners and up to 50% percent for moderate-income homeowners.
The rebate can't exceed $8,000 for both low-income and moderate-income homeowners. It is a point-of-sale rebate, which means you deduct the rebate from the initial purchase price of the heat pump.
The income guidelines 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 applies to you or what the typical income for your community is? The nonprofit group Rewiring America created an online calculator so you can find out. Just provide your ZIP Code and household income.
What Is the Inflation Reduction Act Heat Pump Tax Credit
For homeowners whose income is too high to qualify for a heat pump rebate, there is an Inflation Reduction Act heat pump tax credit. Along with the ability to redeem the credit for up to 30 percent of the purchase or installation of a heat pump, the heat pump tax credit is worth no more than $2,000.
Unlike the rebate, which is used immediately during your initial purchase, the tax credit is received once you have filed your taxes.* Keep 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 only apply to the purchase and installation of energy-efficient heat pump models.
At the very least, a heat pump must have ENERGY STAR® certification for eligibility for the rebate or tax credit. Ask for more information from our team at Kirkfield Heating & 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 after purchasing the heat pump. You get it right away since it's 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, on the other hand, must be redeemed on your taxes.* It decreases the total amount of money owed to the government once you file taxes.
*Consult with a tax professional for full details on how to apply
Reach Out to the Pros at Kirkfield Heating & 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. Kirkfield Heating & Air Conditioning is here to help with all of the details on these discount programs so you receive the greatest savings possible! We're ready to help make your next heat pump installation Winnipeg a smooth and easy experience.