Inflation reduction Act
The Inflation Reduction Act provides tax credits and point-of-sale rebates that can equal thousands of dollars for the installation of high-efficiency HVAC equipment.
Now is the time to consider upgrading your heating and cooling system.
What is the Inflation Reduction Act?
The Inflation Reduction Act of 2022 (IRA) provides homeowners across the United States with federal tax credits and rebates to update their heating and cooling systems with select high-efficiency solutions. This Act is designed to accelerate the adoption of all-electric HVAC equipment and lower utility bills for homes and businesses.
Embrace the Next Generation of Comfort.
The Inflation Reduction Act is expected to reduce U.S. emissions by up to 40% by 2030.1 Qualifying heat pump installations may be eligible for up to a $2,000 federal tax credit for qualifying homeowners to support the conversion of homes to all-electric, high-efficiency solutions.
1. Environmental Protection Agency, Inflation Reduction Act (IRA) Overview. Jan 2023.
Why Upgrade to a Heat Pump?
Heat pumps are an energy-efficient indoor comfort solution because they transfer heat to or from a space rather than creating it. Heat pumps also:
- Help reduce your home's carbon footprint.
- Do not utilize fossil fuels to maintain indoor comfort.
- Do not produce combustion byproducts.
For eligible homeowners meeting specific IRS income requirements, installation may qualify for an $8,000 rebate under the Home Electrification & Appliance Rebate Program. State-by-state availability.
The Daikin FIT Heat Pump
The Daikin FIT heat pump with adaptive inverter technology qualifies for the Inflation Reduction Act tax credit and may provide up to 30% energy savings* with proper installation. This compact, quiet heating and cooling solution for ducted homes meets the required energy efficiency standards and guidelines set by the legislation, promoting sustainability and helping reduce energy consumption.
* Up to 30% air conditioning savings when comparing an inverter 18 SEER2 system to a 12 SEER system.
Programs
Energy Efficient Home Improvement Credit (25C)
Allows for a tax credit value of 30% of installed costs for products meeting the CEE’s highest efficiency tier, up to a maximum of $600 for qualified air conditioners and furnaces, and a maximum of $2,000 for qualified heat pumps effective January 1, 2023.
Home Efficiency Rebate Program
Home Electrification & Appliance Rebate Program
Depending on your state’s fund for the rebate programs, consumers can qualify for income-depending rebates of the following:
- Up to $8,000 for all-electric ENERGY STAR® – certified heat pumps to eligible homeowners and other qualifying individuals.
- Up to $1,600 for insulation, air sealing, and ventilation.
- Up to $4,000 for the Electric Load Service Center.
- Up to $2,500 for Electric wiring.
The maximum rebate is $14,000 per household.
The Home Efficiency Rebate Program and the Home Electrification & Appliance Rebate Program cannot be combined. Consult your tax professional for specific details concerning your ability to qualify.
Upgrading to an ENERGY STAR®-certified heat pump can help you transition from fossil fuels for a cleaner, healthier, more comfortable home.
– ENERGY STAR®
Help getting started.
Solution Builder
Discover your custom energy-efficient system.
Build your indoor comfort solution based on your home’s custom requirements.
* This information does not, and should not be considered tax advice. All information is for general purposes only. Contact your tax professional for specific, applicable details.