The Inflation Reduction Act (IRA) gives homeowners excellent tax credits in exchange for choosing clean burning, energy efficient home heating and cooling systems. But what does this mean for you and your current heating system?
You need to be familiar with two programs in order to make the most of the IRA. Those programs are HOMES (Home Owner Managing Energy Savings) and HEEHRA (High-Efficiency Electric Home Rebate Act). Let’s talk about what they mean.
This is How Much You Can Save on New Installations
Let’s break down the two new programs. With HOMES, you can earn cash back in exchange for lowering your energy consumption, primarily through installing new energy efficient systems. With HOMES, you can also earn cash back in the form of a rebate by adding insulation throughout your home, which will help you lower your energy consumption over the years as well. New installations earn you tax rebates, although it depends on the system.
With HEEHRA, you can earn rebates for point-of-sale purchases. This includes different rebates for different systems in your home, but suffice to say, you can earn up to $14,000 in a single year for electrification projects.
It’s time to schedule that electric furnace repair and make sure it’s up to the new SEER2 standards so you can enjoy the best level of energy efficiency possible.
Your Income Level Impacts Eligibility
HEEHRA eligibility doesn’t depend on your income, but the level of rebate you stand to earn does. Depending on income, you may qualify for larger rebates than high-income households. There is no income requirement for HOMES eligible purchases and changes to your home heating and cooling.
Both of these rebate programs are expected to run until 2031, but since they are being rolled out on a state level, you may have to wait longer than January 1st, 2023 to begin earning your rebate.
Hold On: Heat Pumps Are the Star of the Show
Heat pumps aren’t cheap, but they can actually earn you quite a pretty penny at the same time. Depending on your income level and how expensive your heat pump is, you can earn a rebate of up to $8,000 in total. That’s a big chunk of change to also lower your energy bills at the same time.
That would contribute to more than half your annual $14,000 tax rebate, but if it’s not the right option for you, that’s okay. Electric furnaces are an excellent choice because they’re not as difficult to maintain as heat pumps can be.
Electric Furnaces Are the Future of Home Heating
We know that electric furnaces are energy efficient but now they’re also more affordable and accessible than ever before. With the IRA, you can heat your home while you enjoy excellent tax breaks. This is the opportunity you’ve been waiting for to upgrade your home to an electric furnace.
Contact us today to install a new electric furnace in your home and reap the rewards of the Inflation Reduction Act as soon as possible.