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How to Earn a Rebate for a New Heat Pump in 2023

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Heat pumps are some of the most energy-efficient solutions for year-round comfort in your home. 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 offers a rebate of up to $8,000, making new installation even more affordable. What are you waiting for? Contact the experts at Abilene Air-Tech Inc to schedule your heat pump installation in Abilene.

What Is the Inflation Reduction Act

The Inflation Reduction Act of 2022 intends to reduce inflation’s impact on the country. An increasingly popular strategy is funding green technology and making sustainable HVAC systems more affordable.

Homeowners can benefit from major rebates and tax credits when they purchase energy-efficient equipment such as heat pumps. There has never been a better time to go green!

How Will the Inflation Reduction Act Influence My Energy Costs

The Inflation Reduction Act affects you and other homeowners by making heat pumps and other energy-efficient home upgrades more affordable. It does that by recouping costs through rebates and tax credits.

When it comes to the Inflation Reduction Act heat pump rebates and tax credits, you have two main options for saving money. The program you choose is dependent 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 rebate found in 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 is capped at $8,000 for both low-income and moderate-income homeowners. It is a point-of-sale rebate, which means it is deducted from the purchase price when you buy the heat pump.

The income criteria are:

  • Low Income: Less than 80% of the area median income
  • Moderate Income: 80-150% of the area median income

Unsure 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 that make too much to be eligible for the heat pump rebate, there is an Inflation Reduction Act heat pump tax credit. With the option to recoup up to 30 percent after the purchase or installation of a heat pump, the heat pump tax credit is worth a maximum of $2,000.

Distinct from the rebate, which is used immediately during your initial purchase, the tax credit is received once you have filed your taxes.* Hold onto the 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 can only be used for the purchase and installation of energy-efficient heat pump models.

At the very least, a heat pump must have ENERGY STAR® certification to be eligible for a rebate or tax credit. You can get all the details from our team at Abilene Air-Tech Inc.

How Do I Get the Inflation Reduction Act Rebate

If you are an eligible homeowner, the heat pump rebate in the Inflation Reduction Act is available when you purchase the heat pump. You get it right away as it is subtracted 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, alternatively, must be received after you file taxes.* It decreases the total amount of money owed to the government after you’ve finished filing taxes.

*Consult with a tax professional for full details on how to apply

Contact the Comfort Pros at Abilene Air-Tech Inc for Details About the Inflation Reduction Act Heat Pump Rebate and Tax Credit

With the energy efficiency of a brand-new heat pump, you can save money and do your part for the environment courtesy of tax credits and rebates from the Inflation Reduction Act. Abilene Air-Tech Inc is happy to help you navigate the details on these discount programs so you can enjoy more savings! Our certified team is ready to help make your next heat pump installation Abilene a smooth and easy experience.


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