The 2022 Inflation Reduction Act is a sweeping package of measures designed to help alleviate the financial burden on individuals and businesses across the United States. This bill instituted various initiatives that will lower inflation rates in the economy, including: increasing the availability of credit by loosening lending regulations; creating incentives for businesses to increase their production capacities; and offering clean energy rebates and tax incentives, including for the installation of new, efficient heat pumps.
The heat pump rebate program represents a direct investment in the fight against climate change. By incentivizing homeowners to install heat pumps over traditional air conditioning systems, the government can help reduce emissions of greenhouse gases that contribute to global warming. You can save money, while you’re saving the environment.
Heat Pump Rebates & Savings
Households can claim a tax credit for 30% of the costs of buying and installing a heat pump, up to $2,000 including support for any electric system upgrades needed to make the home heat-pump-ready.
Beginning in 2023 state programs offer low- and moderate-income households rebates for heat pumps at the point of sale, cutting costs of purchase and installation up to $8,000. If home electrical upgrades are needed to integrate new heat pumps, rebates of up to $4,000 are available for households.
Home energy performance-based, whole house rebates (HOME Rebates) for:
- Rebates for energy efficiency retrofits range from $2K to $4K for individual households and up to $400,000 for multi-family buildings.
- Grants to states to provide rebates for home retrofits
- Up to $2,000 for retrofits reducing energy use by 20% or more, and up to $4,000 for retrofits saving 35% or more
- Maximum rebates double for retrofits of low- and moderate-income homes.
- The high-efficiency electric home rebate program to:
- Develop a high efficiency electric home rebate program with $225 million allocated for tribes.
- Includes point of sale rebates administered by states.
- Includes means testing and will provide 50% of the cost for incomes 80 to 150% of area median income, and 100% of the cost for incomes 80% of area medium income and below, and similar tiers for multi-family buildings.
- includes a $14,000 cap per household, with an $8,000 cap for heat pump costs, $1,750 for a heat pump water heater, and $4,000 for panel/service upgrade.
- Other eligible rebates include electric stoves and clothes dryers, and insulation/air sealing measures.
According to Energize Connecticut, Connecticut businesses and homeowners that install new, energy efficient heat pumps can benefit from rebates. Homeowners can earn up to $15,000 in combined incentives for qualifying heat pumps. If you’re interested in participating in the program, contact the heat pump pros at Total Mechanical Systems today.
TMS Discounts, Specials & Savings
Please mention the special offer that you’d like to take advantage of at the time of scheduling service. Not applicable with any other offers, promotions, or on any previous service or installation completed. Other conditions may apply, call for details.
