Save Money on Your Next Heat Pump, Furnaces or Air Conditioner!
The Inflation Reduction Act (IRA) will have no significant effect on inflation. The $739 billion Democratic spending plan is expected to lower the Consumer Price Index by just 0.33% over the coming decade – and that’s a best case scenario. The nonpartisan Wharton School of Business predicts the bill is more likely to reduce inflation by about 0.1% in the next 10 years.
The Environmental Protection Agency (EPA) correctly identifies the IRA as the most significant climate legislation in United States history, which will provide funding, programs and incentives to accelerate our economy’s transition to clean energy. The act may just save the world from certain doom – only time will tell. All we can say for certain is that it embodies the green energy industry’s return on investment for the $11.1 million it donated to the current administration in 2020.
So what does this historic piece of legislation mean for HVAC contractors – and, by extension, the homeowners and commercial property managers who rely on HVAC contractors’ work?
Tax Incentives for Heat Pump Systems
The IRA includes numerous incentives designed to encourage the adoption of cleaner energy sources. These include tax credits for individuals and corporations that invest in energy-efficient appliances, such as heat pumps. If you purchase and install a heat pump before December 31st, 2032, you can receive a tax credit amounting to 30% of the project cost. That credit is currently capped at $2,000.
Why Are Heat Pumps Favored by the Inflation Reduction Act?
Heat pumps are a modern alternative to furnaces and air conditioners: A heat pump is an air conditioner AND a supplemental source of heat for your home. It works by drawing heat energy from the outside air and passing it around and thorough a series of tubes filled with refrigerant gas. The gas passes through a compressor which increases the pressure and temperature causing it to change of a gas to a hot liquid. Heat pumps can operate at up to 400% efficiency whereas electricity is 100% efficient and gas furnaces operate between 80% and 98% efficiency.
Tax incentives and reduced energy costs aren’t the only advantage to installing a heat pump. A heat pump can be significantly quieter than a conventional air conditioner. The quietest model operates at 40 to 50 decibels, which is just softer than a normal household refrigerator. Heat pumps promote improved air quality thanks to their state-of-the-art filtration systems. And because they utilize the same components for both heating and cooling, heat pumps streamline and cheapen maintenance.
Tax Incentives for Furnaces and Air Conditioners
Conventional furnaces and air conditioners aren’t excluded from the rebates prescribed by the IRA. So long as they satisfy the highest standards for energy efficiency as set forth by Energy Star, the following HVAC appliances can qualify for $600 rebates:
- Central air conditioners
- Natural gas, propane or oil water heaters
- Oil furnaces
- Water boilers
Gilk Plumbing, Heating & A/C Can Help You Save Money
Our talented team is standing by to help you identify the best heat pump for your residential or commercial property, as well as an air conditioner, furnace, water heater or boiler that qualifies for a lesser (albeit still significant) rebate. We serve everyone for all their HVAC needs in Albany, Avon, Cold Spring, Eden Valley, Freeport, Kimball, Lake Henry, Paynesville, Richmond, Rockville, St. Joseph and Watkins, Minnesota!
Recent Comments