If you’re a homeowner contemplating an upgrade to your heating, ventilation, and air conditioning (HVAC) system, you’ll find that (HEEHRA) point-of-sale rebates can substantially reduce your immediate financial outlay. Unlike traditional rebates or tax credits, which necessitate paying the full cost upfront and then waiting for reimbursement, point-of-sale rebates offer an instant discount at the time you make the purchase.
This immediate financial relief can make a higher-quality, more energy-efficient HVAC system more accessible to you. Moreover, this form of rebate eliminates the hassle of paperwork and waiting periods, making the process of upgrading your HVAC system both financially and operationally smoother. If you’ve not yet explored how point-of-sale rebates can benefit you in the HVAC space, you could be missing a significant opportunity to invest wisely in your home’s comfort and efficiency.
The High-Efficiency Electric Home Rebate Act (HEEHRA) provides point-of-sale consumer rebates to enable low- and moderate-income households across America to electrify their homes. HEEHRA will help American families save money on their monthly energy bills, create healthier indoor air environments, and reduce their carbon emissions.
HEEHRA is a voluntary program that covers 100 percent of electrification project costs (up to $14,000) for low-income households and 50 percent of costs (up to $14,000) for moderate-income households.
Project costs will cover both purchase and installation costs. And, notably, these point-of-sale rebates will act as off-the-top discounts when a household makes the purchase.
Total household income is under $63,040.
Is eligible for the Low-Income rebates and tax credits.
Purchases a qualifying Heat Pump system for $9,027.35.
Has an out-of-pocket installed cost of $1,027.35 after rebates.
Receives a federal tax credit of $308.21.
Total household income is between $63,040 to $118,200.
Is eligible for the Moderate-Income rebates and tax credits.
Susan purchases a qualifying Heat Pump system for $9,027.35.
Susan has an out-of-pocket installed cost of $4,513.68 after rebates.
Receives a federal tax credit of $1,354.10.
Total household income is above $118,200.
Is eligible for tax credits only.
Purchases a qualifying Heat Pump system $9,027.35.
Has an out-of-pocket installed cost of $7,027.35 after a $2,000 tax credit.
All rebates are expected to become available towards the end of 2023 or the beginning of 2024 and each state will be rolling out its incentive programs individually. As we learn more about how Michigan and Ohio will move forward, we will keep you updated on how we can help you claim your rebate. These details may come later this year. In the meantime, if you’d like to talk through your options, feel free to give us a call! It’s not too early to begin planning for the future.
First, keep in mind that you can begin to receive tax credits on January 1, 2023. In the year following your project, you can claim 30% of your project costs (up to the maximum amount) when you file your 2023 taxes.
The Inflation Reduction Act tax credits are available to all incomes and can be combined with rebates. Simply put, it’s savings everyone can benefit from, regardless of household income! Between 2023 and 2031, you can claim 30% of the cost of qualified electrification projects as tax credits on your annual taxes. Here’s what’s included:
The overall total limit for an efficiency tax credit in one year is $3,200.
This breaks down to a total limit of $1,200 for any combination of home envelope improvements (windows/doors/skylights, insulation, electrical) plus furnaces, boilers, and central air conditioners.
Any combination of heat pumps, heat pump water heaters and biomass stoves/boilers are subject to an annual total limit of $2,000.
Call us to learn more or to reserve your rebates and be in the front of the line.