IRA 2023: Save Money On An HVAC Replacement
The federal government has passed the Inflation Reduction Act, releasing up to $8,000 to most Americans in 2023 for the HVAC replacement of new heat pump systems!
What is a heat pump?
A heat pump often looks just like a standard air conditioner and can either replace a traditional air conditioning system or can be added to your home with a ductless system. Unlike an air conditioner, a heat pump both cools your house in the warm months and heats your house in the cold months.
What are the benefits of a heat pump?
In our climate, temperatures often drop below 0 degrees, so a traditional gas furnace is still necessary for most homes. However, adding a heat pump still has many benefits such as:
- Lower utility costs for much of the year
- Decreased maintenance costs
- Green energy choice
- Provides a backup source of heat
- Provides temperature control to rooms that were previously uncomfortable or unconditioned
Heat Pump Rebates and Tax Credits – Do I qualify?
If your household income is below 80% of your area’s median income, you receive the maximum rebate which covers 100% of your new heat pump up to $8,000.
If your household income is 81-150% of your area’s median income, you’ll receive up to 50% of the heat pump’s cost up to $8,000.
If your household income exceeds 150% of your area’s median income, you still are eligible to receive a 30% tax credit of up to $2,000 on new heat pumps.
In the case of Mankato, MN, as of Dec. 2022, these incomes are: below $75,920 for low-income, between $75,920 and $142,350 for mid-income, and above $142,350 for high-income homes.
To find your area’s median income, go to Area Median Income Lookup Tool.
How To Get An HVAC Replacement in Mankato, MN
State governments will fulfill the HEEHRA rebates. The heat pump rebates will apply to equipment purchased after January 1, 2023.
The IRA heat pump tax credits will likely go into effect in 2023 as well. To receive your tax credit, save your receipt and declare it on your tax return.
Learn more
To learn more about heat pumps or HVAC replacement services for a heat pump call Ignite at 507-428-7120 or request service online.
