The US Inflation Reduction Act & HEEHRA
On August 16, 2022, the U.S. government signed into law the Inflation Reduction Act (IRA). It did this in an effort to reduce greenhouse gas (GHG) emissions.
Dave Lennox Signature® Collection
What does this mean for homeowners?
Homeowners now have more rebates and tax incentives when purchasing energy efficient upgrades.This includes new electric appliances, such as heat pumps, or making home improvements to electrify their home or increase its energy efficiency.
Benefits include rebates to low and moderate-income households, and the contractor, for installing heat pumps. They also include energy-efficiency improvement tax credits for installing Consortium for Energy Efficiency (CEE) highest efficiency tier HVAC equipment.
High-Efficiency Electric Home Rebate Program
The High-Efficiency Electric Home Rebate Program (HEEHRP) provides rebates up to $14,000 per household, including up to $8,000 for installing Energy Star qualified heat pumps, up to $4,000 for electrical panel upgrades, up to $1,600 for home insulation and sealing, and up to $2,500 for home electrical wiring improvements.
Eligibility and the amount of the rebate depends on household income. For households below 80% of area median income, 100% of the system purchase price qualifies for the rebate. For households that fall within 80% to 150% of area median income, 50% of the system purchase price qualifies for the rebate. Households above 150% of area median income do not qualify for the HEEHRP rebate.
The U.S. government appropriated $4.5B of funds for this program and will distribute the funds to state energy offices to administer the rebate program. The duration of the program will depend on the amount of funds available within each state and the number of rebates distributed.
Energy Efficient Home Improvement Tax Credit (25C)
The renewed Energy Efficient Home Improvement Tax Credit (25C) increases the tax credit limit for installing CEE Top-Tier high-efficiency equipment, such as heat pumps, central air conditioning systems, furnaces, hot water boilers and more, and extends the offering through 2032. The 25C credit has an annual cap of $1,200 – including up to $600 for qualified air conditioner or gas furnace – or up to $2,000 with a qualified heat pump, heat pump water heater or boiler.
There are no income requirements for this tax credit, and it cannot be combined with other federal programs such as the HEEHRP. However, the 25C Tax Credit may be eligible to combine with local or utility rebates.
1 Year Review of IRA
How has the IRA impacted the US's push towards clean energy? In just one year these milestones have been achieved:
170,000 jobs created focussed on clean energy
110 billion in new private sector clean energy investments
American households will save between $27-38 billion in utility, specifically electricity, bills
The Department of Energy also published it's own study called on August 23, 2023 called, "Investing in American Energy: Significant Impacts of the Inflation Reduction Act and Bipartisan Infrastructure Law on the U.S. Energy Economy and Emissions Reductions". It proves that the IRA is making a positive impact on the climate and for American families.
Miller’s-Here to Help With Energy Efficient Upgrades
Miller’s Heating & Air is leading the marker in in super high-efficiency equipment. All Dave Lennox Signature® Collection products in the Ultimate Comfort System qualify for the tax credit. Lennox offers a broad assortment of Energy Star qualifying heat pumps for the rebate program.Let us know how we can help you.We are up to date and knowledgeable on all home energy rebates and electric home rebate acts. Our goal is to lower your energy costs and energy bills.
In addition, we have an electrical department ready to handle all of your qualified electrification projects. We hold both Oregon and Washington electrical licenses.
Contact us today for all of your HVAC energy efficiency and electrification needs.
