The United States government is making it more affordable than ever to ditch your old HVAC and upgrade to an air source heat pump. On Jan. 1, air source heat pumps recognized as Energy Star Most Efficient are eligible to claim up to 30% of project costs, per Energy Star.
Previously, the Energy Efficient Home Improvement Tax Credit only allowed a homeowner to claim a maximum of 10% of project costs, but the Inflation Reduction Act expanded the benefits offered, making it possible to get up to 30% with a $2,000 maximum for qualifying air source heat pumps.
There are two avenues for eligibility. One is meant for heating-dominated products (intended for colder climates), and qualified applications will have the designation of Energy Star Cold Climate.
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The cost of installation 💵 The other avenue is for cooling-focused and dual-fuel applications, such as a heat pump paired with a furnace. There's no longer a regional requirement for eligibility, so homeowners can choose the avenue that's right for them, regardless of their home's location.
Many homeowners are switching to heat pumps for their ability to outperform traditional HVACs in energy efficiency, reducing power bills. Despite their name, heat pumps are capable of both heating and cooling, keeping homes at comfortable temperatures while using less energy.
Homeowners can enjoy lower energy bills while also knowing they're helping the environment by reducing their home's pollution output. The installation costs can be expensive, but the IRA tax credits and long-term savings greatly reduce the price.
IRA incentives are a smart way to save some cash now. President Trump has consistently threatened to eliminate these subsidies, and while changing the IRA would ultimately take an act of Congress, its future is uncertain. It's important to act fast to save yourself thousands.
There are a lot of variables to consider when researching the right heat pump for your home. Luckily, EnergySage's Heat Pump Marketplace has simplified the process for you. A quick visit to the company's website can help you find great products and vetted providers in your area.
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