Are you tired of sky-high heating bills during the winter months? It may be time to consider switching to a heat pump. In today's environmentally conscious world, heat pumps are quickly becoming the preferred method of home heating. Not only are they more efficient and cost-effective compared to traditional heating systems, but they also have a lower impact on the environment. The recent passing of the Inflation Reduction Act has made heat pump installation even more accessible, thanks to some exciting new rebate and tax credit programs.
The High Efficiency Electric Home Rebate Program offers direct financial incentives to homeowners who install heat pumps in their residences. The High-Efficiency Electric Home Rebate Program provides rebates up to $14,000 per household, including up to $8,000 for installing Energy Star qualified heat pumps, up to $4,000 for electrical panel upgrades, up to $1,600 for home insulation and sealing, and up to $2,500 for home electrical wiring improvements. Eligibility and the amount of the rebate depends on household income. For households below 80% of the area median income, 100% of the system purchase price qualifies for the rebate. For households that fall within 80% to 150% of the area median income, 50% of the system purchase price qualifies for the rebate. Households above 150% of the area median income are not eligible to receive the rebate but could qualify for the 25C tax credit.
Homeowners who do not meet the income requirements for the HEEHRA program can enjoy savings through The Energy Efficient Home Improvement Tax Credit. The Energy Efficient Home Improvement Tax Credit allows for a portion of heat pump installation costs to be deducted from yearly taxes. The renewed Energy Efficient Home Improvement Tax Credit (25C) has extended the 2021 program into 2022, and starting in 2023, increases the tax credit limit for installing CEE Top-Tier high-efficiency equipment, such as heat pumps, central air conditioning systems, furnaces, hot water boilers and more, and extends the tax credits through 2032. The new 25C credit has an annual cap of $1,200 – including up to $600 for qualified air conditioner or gas furnace – or up to $2,000 with a qualified heat pump, heat pump water heater or boiler. There are no income requirements for this tax credit, and it cannot be combined with other federal programs such as the High-Efficiency Electric Home Rebate Program. However, the 25C Tax Credit may be eligible to combine with local or utility rebates such as NHSaves.
With these programs in place, heat pump technology is now within reach for an increasing number of American households. Call A.J. LeBlanc Heating to make the switch and take advantage of these opportunities for a cleaner and more cost-effective way to heat your home.