The Inflation Reduction act is designed to help homeowners save money, upgrade their homes HVAC systems, and provide some environmental benefits as well.
With massive savings on the horizon, it’s important for you to know how it directly impacts you. We’ve already seen the national headlines and big figures, but now let’s focus on you and your home.
Two Main Programs You Need to Know About
Two programs in the IRA affect homeowners. There’s the HOMES program, and the HEEHRA program. Each has different benefits, so let’s see which one sounds like it would work the best for you.
This program aims to lower your home energy consumption by installing brand new, energy efficient appliances that use far less energy than what you’re using now. This includes your HVAC system, by the way.
Beyond HVAC, you can install new insulation in your home to access rebates as well. This is important because it further lowers your energy consumption by helping your home hold on to temperature treated air more efficiently.
With the HEEHRA program, you receive rebates through point-of-sale discounts. This means that your tax rebates come from purchasing new appliances that improve your energy efficiency. However, there’s a catch.
The HEEHRA program works on a scale system. Low-income households can receive rebates up to 100% of the purchase price for electrification projects (with a cap of $14,000), whereas moderate-income households will only receive up to 50%. It all depends on income. Heat pumps currently provide one of the highest tax rebates available with a limit of $8,000.
It May Take Some Time to Roll Out
While the Inflation Reduction Act sounds quite promising, it’s worth noting that there’s a disconnect between the federal government and your state government.
The IRA impacts all of the United States, but how each state government rolls out access to tax rebates is on them. Some states may take up to a year or more to make tax rebates accessible to residents.
Before you jump in with both feet, it’s important that you know how your state provides access to these rebates. We’ll make updates to our blog as more IRA information becomes available.
When it’s time to install new HVAC systems and reap the rewards of the IRA, contact JN Electrical Temperature Control, Inc to Feel The Difference.