State-of-the-art energy-efficient heating and cooling equipment is often out of reach for homeowners with low or moderate income. The Inflation Reduction Act of 2022, which includes substantial rebates and tax credits for high-efficiency heat pumps and other energy-efficiency upgrades, is a game-changer for these households.
Hooray for HEEHRA – the Incentive Program for Switching to a Heat Pump
HEEHRA, or the High Efficiency Electric Home Rebate Act, is the part of the IRA that provides income-based incentives for the purchase and installation of electric appliances, including heat pumps for home heating and cooling. The three tiers of incentive are as follows:
- Low Income: 100% rebate up to $8000
- Middle Income: 50% rebate up to $8000
- High Income: 30% tax credit up to $2000
This means that many low-income households would pay absolutely nothing for a brand-new high-efficiency heat pump. To sweeten the incentive, the rebate applies at the point of sale, meaning the homeowner does not have to lay out the money and then wait for the rebate payment.
What’s more, HEEHRA also includes rebates of up to $4000 for home electrical upgrades, which could be necessary when using a heat pump, especially in older homes.
The Many Benefits of a Heat Pump
Reaping hefty savings from the IRA is not the only reason to heat and cool your Atlanta home with a heat pump. Compared with a traditional AC unit and gas or oil furnace, a heat pump:
- Lowers Utility Bills: Heat pumps are significantly more energy-efficient than furnaces, which means lower utility bills.
- Improves Indoor Air Quality: Many heat pumps have dehumidifying and air-filtering capabilities to improve air quality in the heating and cooling seasons.
- Makes Less Noise: Heat pumps run more quietly than AC compressors and furnaces.
- Reduces Use of Fossil Fuels: Whereas a furnace burns fuel to produce heat, a heat pump uses electricity and a refrigerant to extract thermal energy from outdoors and pump it indoors.
For more information on the energy-efficient HVAC upgrades you can make in your Atlanta home, reach out to Comfort Zone Heating & Cooling.