Are you a Dallas-Fort Worth homeowner looking to upgrade your current HVAC system to a more energy-efficient heat pump in 2023? If so, now is the time to take advantage of these new money-saving programs available to you. Recent modifications to the Inflation Reduction Act (IRA) aims to incentivize homeowners to make energy-efficiency upgrades to their homes by installing new high efficiency heating and cooling equipment, along with other home appliances. Installing a high efficiency heat pump system can qualify homeowners for one of the largest credits and rebates available.
Heat pumps work similarly to central air conditioners in that they cool or heat air through evaporation and condensation of refrigerant. When paired with cleaner electricity sources, heat pumps are the most energy efficient and sustainable way to control the temperature in your home.
To qualify for these programs, there are a few requirements you’ll need to meet. Keep reading to learn everything you need to know about IRA Tax Credits, and HEEHRA rebates along with what you need to qualify.
Federal Tax Incentives for Heat Pumps
Last year $370 Billion was put aside for climate and energy programs with the signing of the Inflation Reduction Act (IRA). Along with the updates to the IRA comes quite a large increase in limits and even an extension of the Energy Efficiency Home Improvement Tax Credit (25C). This Federal tax credit allows homeowners to claim 30% of the cost of qualifying energy improvements with an annual limit of $2000. Meaning, you can claim the cost of those energy improvements made on your home, year after year.
HEEHRA Heat Pump Rebate
Another program made available to Texas homeowners is the High Efficiency Electric Homes Rebate Act (HEEHRA). This is a new federally funded program offering qualifying Texas homeowners huge rebates to install new, energy-efficient heat pumps in their homes. HEEHRA will not only help save Texas families money on their monthly utility bills, but it will also reduce carbon emissions and create healthier indoor air quality. This rebate will provide a maximum amount of $14,000 to assist with the varying costs required to electrify mid-low-income households.
HEEHRA rebates along with federal energy efficiency and electrification tax credits can be stacked to maximize savings!
HEEHRA Program Requirements
- You’re eligible to receive the max rebate of $8,000 for a new heat pump if your household income is less than 80% of the median household income for your area.
- You can receive up to 50% of the max if your household income is 81-150% of your area’s median income.
- House hold incomes exceeding 150% aren’t eligible for the HEEHRA rebate program, but you can still receive a 30% tax credit totalling up to $2000 a year on a new heat pump.
To summarize, Dallas-Fort Worth homeowners have the opportunity to save big money when upgrading to a new energy efficient heat pump through the IRA Tax Credit and HEEHRA Heat Pump Rebate programs. If you’re interested in upgrading your HVAC system to a more energy-efficient heat pump, contact Aire Texas Residential Services, Inc today. We’ll work with you to determine if you qualify for the IRA Tax Credit or the HEEHRA Heat Pump Rebate and help you take advantage of these money-saving programs.
Aire Texas Residential Services, Inc is a trusted HVAC contractor in Dallas, TX that can help you take advantage of these programs, so don’t hesitate to reach out to us for assistance. Contact us today and let us help you save money on your new heat pump installation. We’re committed to doing it right the first time, every time.