Do You Qualify for an AC/Heating Rebate or Tax Credit?

Among many other objectives, the 2022 Inflation Reduction Act passed by President Joe Biden aims to lower costs for American homeowners. This includes help investing in energy solutions and related home improvements for qualified taxpayers.

What does this mean for you? When you install a new air conditioning and heating system, it means you may be eligible to choose from one of these two options:

1. High-Efficiency Electric Home Rebate Program (HEEHRP)

As part of the 2022 Inflation Reduction Act, $4.5 billion was appropriated by the U.S. Government to fund the HEEHRP. These funds will be distributed to state energy offices, which will continue to offer the rebate program so long as funds are available. There are only so many rebates that can be distributed, but you can be eligible for the program if your household income falls within these limits:

  • Households Below 80% of the Local Median Income: The rebate may cover 100% of the system purchase price.
  • Households Within 80% to 150% of the Local Median Income: 50% of the system purchase price can qualify for the rebate.
  • Households Above 150% of the Local Median Income: Will not qualify for the HEEHRP rebate.

Households that qualify for the HEEHRP can receive an HVAC rebate of up to $14,000. This includes up to $8,000 for installing an Energy Star rated heat pump, up to $4,000 for upgrading an electrical panel, and up to $2,500 to improve home electrical wiring. Up to $1,600 can be received for insulating and sealing a qualifying home.

2. Energy Efficient Home Improvement Tax Credit (25C) Program

The 25C program has been renewed. Previously scheduled to expire at the end of 2021, it has been extended until 2032. Households that install CEE Top Tier high-efficiency equipment are eligible for the tax credit, which is now retroactive to January 1, 2022. There’s now an annual cap of $1,200, excluding heat pumps, but households can receive up to:

  • $600 for each qualified air conditioner or gas furnace; a qualified AC must achieve at least 18.00 SEER and 13.00 EER.
  • $2,000 for a qualified boiler, heat pump, or heat pump water heater; a qualified heat pump AC must achieve at least 18.00 SEER, 13.00 EER, and 9.50 HSPF.

While the 25C tax credit cannot be combined with other federal programs, it does not have any income requirements. It can cover 30% of the total cost of installing your HVAC system (including labor) if eligibility requirements are met.

Contact Tri County Air to Learn More

We can help determine if your household qualifies for the HEEHRP or a 25C tax credit. At a time when inflation continues to rise and the cost of living in Florida is getting higher, our team knows how important it is to save. Contact us or call (941) 485-2222 for more information on how you can benefit from the 2022 Inflation Reduction Act.