The recently passed Inflation Reduction Act has revitalized US efforts to encourage sustainable energy practices. Alongside wide-ranging provisions for industry and businesses to increase renewable energy use and cut back on waste are various incentives for homeowners to make responsible energy decisions. Investing in a heat pump in Des Moines, IA, is one such decision that can provide major incentives.
The Tax Incentive For New Heat Pump Installation
Before you rush out to buy a heat pump, keep in mind there are many stipulations. You should work with a professional installer to make sure that your new heat pump installation is eligible for the new tax incentive.
First, you’ll need to ensure that your new heat pump meets the sustainability standards baked into the tax incentive. That means being in the Consortium for Energy Efficiency’s Advanced Tier. With one of the most efficient models, you’ll save even more on your monthly cooling and heating bills.
When you purchase such a heat pump, you’ll be eligible for a federal income tax credit of up to 30% of the total cost, including labor. There’s a limit of $2,000 for the tax credit as well. The tax credit reduces your taxes owed at the end of the year, and cutting taxes by $2,000 sounds more than reason enough.
Upcoming Heat Pump Installations
Certain households will soon be able to invest in a heat pump in Des Moines, IA, even more affordably with the upcoming impact of the High-Efficiency Electric Home Rebate Act that was parceled with the Inflation Reduction Act.
Starting in January 2023, households will be able to receive rebates for heat pump installation based on their income relative to the area’s median income. Households below 80% of the median income may be eligible for a 100% rebate on a new heat pump, while those from 81 to 150% of the median income can receive a 50% rebate.
Get Your New Heat Pump In Des Moines, IA
Not sure if you qualify for these incentives? You can reach out to the experts at True Comfort Heating, Cooling and Plumbing to find out more, get a reliable quote, and find financing options to make an efficient heat pump a reality for your home.
