Heat Pump Tax Credit
For the year 2023 the federal government, state government, and local power companies will be offering tax credits & rebates for new energy efficient heat pumps. These incentives will go up to $2,500, which can be used to install your new system. This program was introduced with the Inflation Reduction Act of 2022 and its goal is to reduce energy costs. By upgrading to a more efficient system in your home you can save on further heating costs, and get a large portion of the total cost covered. Between the rebates & credits you can get paid $2,500 for installing a heat pump. The tax credits are not dependent upon certain levels of income, and can be used by anyone. Rebates will have an income cap, but at this time we are unsure of what it may be. As the program has more details announced we will be making updates to this page.
Why a Heat Pump?
- Energy efficiency: Heat pumps use electricity to transfer heat, rather than generating it through the combustion of fossil fuels. As a result, they are much more energy efficient than traditional heating and cooling systems. In fact, heat pumps can provide up to four times the amount of energy they consume, making them a smart choice for homeowners looking to save on their energy bills.
- Cost savings: Because heat pumps are so energy efficient, they can significantly reduce your heating and cooling costs. In fact, homeowners who switch to a heat pump can save up to 50% on their energy bills compared to using a traditional HVAC system.
- Versatility: Heat pumps can be used to both heat and cool your home, making them a versatile choice for year-round comfort. In the winter, a heat pump can extract heat from the air or ground outside and bring it inside, while in the summer it can work in reverse to remove heat from your home and release it outside.
- Environmentally friendly: Heat pumps do not produce any greenhouse gas emissions, making them an environmentally friendly choice for heating and cooling your home.
- Long lifespan: Heat pumps can last for up to 20 years with proper maintenance, making them a long-term investment for your home.
Need a Consultation?
At Baumann & DeGroot we have decades of experience when it comes to designing HVAC systems. Understanding how to maximize the total rebate & credit you will receive is difficult, but we will help you design a system that will maximize both. Upgrading to an efficient system will not only lower your monthly heating bills, but could be covered largely by credits as well. If you would like a free consultation to discuss your options call (616) 439-9718 today! Or click here to fill out a form.
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