The Inflation Reduction Act and Home Upgrades
The Inflation Reduction Act was signed into law a few months ago, with a few goals in mind for the future. One of the big goals of the proposal is to reduce our carbon footprint with regards to climate change.
Most of these points in the act are directed to help companies and businesses reduce their emissions and become more environmentally friendly. Still, there was a large chunk of money set aside to help homeowners make their homes more energy efficient.
So many people are using old equipment to heat and cool their homes, as well as old doors, windows, siding, etc. The reason in most cases is that it’s too expensive to make the upgrade to more energy efficient equipment.
The Inflation Reduction Act has tax credits and rebates (depending on the level of your household income) that will help homeowners curb some of the initial cost of upgrading your home.
Contact Us To Plan Your Upgrade
Can The IRA Save You Money On Home Upgrades?
To put it simply, yes the IRA will be able to help you with saving money on home upgrades through taxes credits and in some cases, rebates on new equipment. Each home can qualify for up to $14,000 in home upgrades, spread across different aspects of your home. For example, something smaller like an energy efficient door can qualify for up to a $500 tax credit, where a new heat pump can get a $2000 credit.
High-Efficiency Electric Home Rebate Act
This act is geared towards providing rebates for homeowners with middle or lower household incomes. Some of these rebates are very appealing, especially the one for heat pumps, which are used to both heat and cool with extreme energy efficiency. Here are some of the highlights of the rebate program:
- $1,750 for a heat pump water heater
- $8,000 for a heat pump for space heating and cooling
- $840 for electric stoves, cooktops, ranges, ovens and electric heat pump clothes dryers
- $4,000 for an electric load service center upgrade
- $1,600 for insulation, air sealing and ventilation
- $2,500 for electric wiring
The HOMES Rebate Program
This is a program designed to reward homeowners for achieving lower energy consumption through upgrading their efficiency. Homeowners that make upgrades that achieve 35% reduction in energy consumption can qualify for a $4,000 rebate. This amount could be doubled up to $8,000 for lower to middle income households.
What Should You Do?
Now that you know there are incentives for new heating and cooling equipment, the best thing we recommend is to start planning your upgrade, if you are in the market for one. A lot of these incentives are kicking in for 2023, and some aren’t even available just yet. This is why there’s no need to grab the checkbook right away and get a new system tomorrow.
Instead, contact a contractor and start planning for an upgrade when the rebates and tax credits are the best. In some cases, this may mean planning for an early 2023 installation, that will save you money and upgrade your heating right in the cold of winter.
Contacting a contractor now will help put you on the right schedule for saving the most money, and getting the best equipment for your home.
The other thing you can do is schedule a home energy audit. There is a credit for that in the act as well, and this will be able to help you determine where you can save the most energy. Your contractor should be able to perform your home energy audit.
Contact Broadley’s To Plan Your Upgrade
Heating And Air Conditioning Upgrades In Ocean City, NJ
If you are considering an HVAC upgrade at your Jersey Shore home, Broadley’s can help. We are a family run business that has been operating in the area for over 60 years. We can help you with any repairs, service, or upgrades with your heating and air conditioning equipment. Give us a call at (609) 390-3907 and we will be happy to help make your home comfortable!