The Inflation Reduction Act
You may have heard about the Inflation Reduction Act, and maybe not. In a nutshell, it’s a significant piece of federal legislation that passed this past August, aimed, in part, at fighting climate change and putting incentives in place for businesses and homeowners to adopt more eco-friendly practices, including increasing energy efficiency.
So What Does That Mean For Me?
If you’ve been considering a heat pump system to add air conditioning or extra heating to your home, or it’s getting time to consider replacing your current HVAC system, there may be new tax breaks and incentives that could save you some significant money.
The Treasury and the IRS are still in the process of rulemaking to implement the Inflation Reduction Act’s Clean energy tax incentives. The rules are expected to come in 2023 and 2024, and households could get rebates of up to $14,000 when adopting efficient electric appliances and HVAC systems.
You could qualify for rebates of up to $1,750 for a heat-pump water heater, up to $8,000 for a heat pump for space heating and cooling, and there are even rebates available for moving to electric stoves and clothes dryers as well- and the cost of upgrading your electric wiring may also be covered!
Can The Inflation Reduction Act Save Money On My HVAC Upgrade?
If you have been considering adding a Carrier or Bryant mini-split heat pump system to your home, to provide additional heating and cooling where you need it most, this might be a great time to schedule your job for early 2023.
Carrier and Bryant heat pump systems are extremely efficient, and they can save you significant money every month on your energy bills. With 70% more efficient heating and 30% more efficient cooling, heat pump mini-split systems can save you a ton of money while delivering better comfort where you need it most in your home. Give John Cipollone Inc. a call at (610) 446-7877, or visit us here to help plan your HVAC upgrade using the IRA incentives.
Energy Efficiency Is Budget-Friendly
While many of us want to be more energy efficient and eco-friendly, the cost to install a new system can make people think twice before making a leap, or they might simply wait for their current system to finally die before making a choice. But especially when the price of home heating oil and gas is so volatile, monthly energy bills are becoming less predictable and much more of a concern to every budget here in the Havertown area.
Some of the new tax credits are retroactive to 2022, but the credits increase significantly in 2023, especially for lower-income households. Depending on the energy-efficiency improvements you make to your home, the number of credits you will get will vary. For example, a geothermal heat pump system could qualify for up to a $2,000 tax credit, while adding an energy-efficient door will only qualify for a $500 credit. Some of the key points to note:
- The credit has been revived and made retroactive for 2022 (at the original 10%)
- Beginning in 2023, the credit increases to 30% of the total installation costs through 2032
- A lifetime cap of $500 will be replaced by a cap of $600 per measure, with a $1,200 annual total limit (exceptions listed below)
- Eligible services and home improvements include:
- Heat pumps and heat pump water heaters ($2,000 credit)
- Insulation and air sealing
- Energy audits ($150 credit)
- Energy-efficient HVAC systems (including furnaces, boilers, and central AC)
- Electrical panel upgrades
- Energy-efficient windows and doors ($500 credit for doors)
All of these energy-efficient upgrades will pay you back every month with lower energy bills. And in Pennsylvania, you can also choose an energy provider that gets a portion or all of its energy from renewable sources, meaning you can choose to save the planet while saving money every month on your bills.
Energy Efficiency HVAC Upgrades In Havertown, PA
At John Cippollone Inc., we can help you with improving your home comfort while taking advantage of these new energy-efficiency tax incentives and rebates. These home improvements will also help increase the value of your home while reducing your energy bills at the same time.
Whether it’s adding a new heat pump water heater, replacing an aging heating and cooling system, or adding additional comfort in those hard-to-heat and cool spaces in your home with a mini-split system, John Cipollone is ready to serve you.
Give us a call at (610) 446-7877 and we can set up an appointment to evaluate your current system and help you decide how to take advantage of these new rebates and incentives to make these improvements more affordable than ever!