What Is the Inflation Reduction Act?
The Inflation Reduction Act allows homeowners to purchase a new HVAC system with tax credits to fight inflation. For those who qualify, thousands of dollars spent on installation can be drastically reduced. In 2023, homeowners are now eligible for tax credits and rebates to knock off $2000 for heat pumps. To reduce extra expenses, Santa Fe, NM residents are encouraged to explore their options.
The Inflation Reduction Act: What Is It?
The Inflation Reduction Act, or the IRA, was created to help our climate. By reducing greenhouse gasses, the IRA has profoundly impacted the environment since 2022. In addition to climate control, the IRA can also keep energy bills low.
Upgrading a heating or cooling system is much less expensive when specific rebates are used. These point-of-sale rebates can add up to thousands of dollars for high-efficiency appliances such as new air conditioners, heaters, and heat pumps. Depending on income requirements, homeowners may receive up to $8,000 for installation costs.
Which Appliances Qualify?
Each appliance that meets the IRA specifications must operate at maximum efficiency. The Energy STAR-certified appliances are known for their environmentally-friendly heat pumps and biomass stoves.
Central air conditioning systems, furnaces, and boilers are not the only approved products. ENERGY STAR also makes heat pump water heaters, insulation, windows, and battery storage technology. Tax credits can be used for almost all areas of the home regardless if it’s built for plumbing or heating purposes.
In 2023 all of these costs will be reduced with the help of installation credits. A rebate of up to $2000 can be applied for heat pumps. Gas furnaces and air conditioners may be worth up to $600 in rebates.
Water heaters can last approximately ten to fifteen years before replacement is necessary. Air conditioners last ten to twenty years. If several appliances were installed simultaneously, all appliances might break at once. Replacements are recommended after a decade to ensure all appliances are running efficiently.
Air conditioner upgrades make a marked difference in home comfort. Since there are several components to the air conditioner, small problems may affect other areas of the HVAC system. A new appliance can accurately sync with the home thermostat for cold, fast air. Newer models based on high efficiency also automatically stop at a preferred setting.
High-efficiency appliances save homeowners money on their monthly electric bills. They also need less energy to produce the same effect. A high-efficiency heat pump reduces carbon emissions while saving homeowners $8000 on home installation. This reduces the overall up-front cost in addition to monthly bills.
The Energy Efficient Home Improvement Credit will help increase the original tax credit. 10% of installation costs becomes 30% for those who qualify. Rebates apply to a variety of top-tier appliances for the home.
About Daniel’s Plumbing, Heating, and Air Conditioning
Daniel’s Plumbing, Heating, and Air Conditioning offers routine inspections and emergency services. They have a full staff of licensed and experience HVAC contractors who offer personalized solutions, honest advice, and upfront pricing on every service call. For more information on their free estimates in Santa Fe, NM, call Daniel’s Plumbing, Heating, and Air Conditioning today.