Are you curious about how you can take advantage of tax credits and rebates for upgrades in your home with the Inflation Reduction Act? While the law covers many different facets that could take hours to explore, today we are breaking down how the Inflation Reduction Act can save homeowners thousands of dollars with tax and rebate incentives for intstalling more energy-efficient home upgrades.
Whether it’s energy-saving tactics like sealing your ducts, investing in new windows, installing a new electric panel or a new heat pump, the Inflation Reduction Act is easing the financial burden of these home upgrades in a major way.
Listen to our podcast above or read more to learn about how the Inflation Reduction Act is making it easier for homeowners to save money and energy this year.
The Electrification of Homes in America: Is the Future Here?
The state of California has recently passed a law that bans gas fired furnaces as of 2030. Michigan has not seen anything similar to this yet, but with the push on electrifying our homes and vehicles, it may not be long before we see laws like this passed in other states.
What Does The Inflation Reduction Act Mean for Homeowners?
The Inflation Reduction Act is a law that was passed last year in effort to reduce carbon emissions and help conserve energy. With this act, homeowners will be able to get large tax breaks and rebates for going electric in their homes. There are various ways to potentially save thousands on major home upgrades like installing an energy-efficient heat pump, solar panels, new windows, doors, and more.
How Much Money Can You Save on Electric Upgrades This Year?
Power companies and individual states are still working on policies regarding their rebates and we don’t quite know how much the dollar amount on those rebates will be. However, between rebates and major tax credits, you can save thousands of dollars. For example, you can receive up to a $2,000 tax credit with the IRA and up to an $8,000 rebate with HEEHRA (High-Efficiency Electric Home Rebate Act) for installing a new heat pump in 2023. This would almost pay for a new heat pump entirely! A ducted heat pump can also save up to 50% in energy costs by using electricity to both heat and cool your home.
This video explains how a ducted heat pump works to heat and cool your home efficiently:
While some of these rebates, like those found in HEEHRA, aren’t yet in full effect, it’s likely that they will be applicable electric upgrades made in 2023 by the middle or end of the year. The IRA has been in effect since January 1, 2023. With tax season coming up, it’s best to talk to your accountant to see what kind of tax credit you qualify for since the tax credit is based on household income and other factors.
To get a general idea of how much you can save for electrifying your home, visit: https://www.rewiringamerica.org/app/ira-calculator
Another Way to Save Energy? Geothermal HVAC
There are a few different types of geothermal systems. The more traditional system uses loops that are drilled down into the ground. These giant loops then circulate a water glycol mixture to either warm it or cool it, depending on what the furnace needs. In the end, you’re left with a highly efficient system that turns that water into warm or cool air for your home.
An open loop geothermal system expels the water into a nearby water source after it has left the home, such as a pond or drainage ditch.
A Well-Connect is a hybrid geothermal system that dumps the water into a drain field from your sump pump. We are the only Southwest Michigan HVAC company that installs WellConnect systems. You can learn more about them here: https://thebossservices.com/hybrid-geothermal-hvac-system/
Need more information about how you can apply the Inflation Reduction Act to home upgrades?
If you are ready to upgrade to electric components and are curious about what options are available to you, you can call our office at 269-468-6682 to set up a free consultation at your convenience.
We serve all of Southwest Michigan from Niles and New Buffalo to the St. Joseph and Benton Harbor area to Kalamazoo. If you have any heating, cooling, plumbing, electrical, bathroom, or window questions, we are the most comprehensive home services company in the area with a reputation for raising the standard in the industry. We are happy to help make your home comfortable however we can and will refer you to someone else we trust if we don’t provide that service!