What to Know About This New Piece of Legislation and How it Promotes Energy-Efficient Upgrades
The U.S. Bureau of Labor Statistics reports that the U.S. is seeing a historic increase in the price of everyday goods, from household appliances to groceries. This has made it difficult for many homeowners to make ends meet. The government has passed the Inflation Reduction Act to help make things more affordable (and reduce the country’s carbon footprint).
This legislation makes it easier for homeowners to purchase and install eco-friendly heaters, air conditioners, and heat pumps by offering tax credits and rebates. In this blog, homeowners can learn more about the Inflation Reduction Act and what it could mean for their next HVAC upgrade. For more information about what this act entails, including its other benefits, one can read it here.
The Inflation Reduction Act Makes Getting a New HVAC System Affordable
The Inflation Reduction Act is an important tool that helps Americans stay ahead of rising energy costs while improving the environment. It is designed to help homeowners save money by reducing the cost of energy-efficient air conditioners, heaters, and heat pumps. Under the act, those who purchase qualifying new energy-efficient appliances receive tax credits and rebates.
The amount varies depending on the type of appliance being purchased and the energy efficiency rating. In addition to providing cost savings, these appliances also help reduce energy usage in the home, providing savings on utility bills and environmental benefits as well. Qualifying households can save hundreds of dollars per appliance purchased and help support a transition to a cleaner energy economy.
What Are the Requirements for the Inflation Reduction Act’s Benefits?
The Inflation Reduction Act provides tax credits and rebates for energy-efficient HVAC systems and heat pumps that meet the efficiency requirements. For instance, forced-air furnaces must have an AFUE (Annual Fuel Utilization Efficiency) rating of at least 90% to qualify for tax credits and rebates. Similarly, air conditioners and heat pumps must have a SEER (Seasonal Energy Efficiency Ratio) rating of at least 16 to qualify for the benefits. Additionally, boilers must have an AFUE rating of at least 95%, and geothermal heat pumps must have an EER (Energy Efficiency Ratio) rating of at least 14.5 to qualify for the tax credits and rebates.
It is important to note that these requirements are subject to change, so homeowners must consult with their local HVAC installer or other relevant authorities to determine the exact specifications for their particular system or pump. Furthermore, these credits and rebates are only available for installations starting in 2023 and beyond. With the proper information and understanding of the requirements, homeowners can take advantage of the tax credits and rebates provided by the Inflation Reduction Act.
The Benefits of Getting a New HVAC System
There are countless benefits to getting a new heater, air conditioner, or heat pump and replacing an older one, including:
- Longer lifespan
- Better efficiency
- Saving money on utility bills
- Fewer problems
- Better performance
By taking advantage of the rebates and tax credits offered in the Inflation Reduction Act, homeowners will not only save money through tax credits and rebates, but because the system is required to be energy efficient, they will also save money on their energy bills.
About Elite Electric, Plumbing & Air
Elite Electric, Plumbing & Air has over 30 years of expertise serving Port St. Lucie, FL, and the surrounding areas. They provide upfront pricing, on-time arrival, and 24/7 emergency service. Call them today for a heater, air conditioning, or heat pump installation in Port St. Lucie, FL.