On August 16th, the United States Congress passed the Inflation Reduction Act. What does that mean for the HVAC industry, and especially for you? Read on to find out!
What is the Inflation Reduction Act?
Part of the Build Back Better Act, the Inflation Reduction Act seeks to curb inflation by reducing the deficit and investing in domestic energy production while promoting clean energy.
The law will authorize $391 billion in spending on energy and climate change, among other initiatives. It is the largest investment into addressing climate change in United States history, and is projected to reduce 2030 U.S. greenhouse gas emissions to 40% below 2005 levels.
Impact on Energy and Climate Change
Primary goals of the Inflation Reduction Act consist of driving down consumer energy costs, increasing energy security, and reducing greenhouse gas emissions.
The bill aims to decrease residential energy costs with funds allocation for clean energy production and reduction of national greenhouse gas emissions. The bill also grants the EPA more authority to regulate carbon dioxide and other greenhouse gasses, as well as to promote renewable energy.
Effect on You and Your HVAC
So what does this all mean for you and your HVAC?
Measures include $9 billion in home energy rebate programs that focus on improving access to energy efficient technologies. and 10 years of consumer tax credits for the use of heat pumps and high-efficiency electric heating, ventilation, air conditioning, and water heating.
The bill includes a 10 year extension and expansion of the Energy Efficient Home Improvement Credit tax incentive.
To receive these tax credits, homes must comply with the most recent Energy Star Single-Family New Homes Program Requirements in effect on January 1, 2023, or January 1 of two calendar years before the date the home was acquired.
One of the components of the Inflation Reduction Act is the newly created High-efficiency Electric Home Rebate Program. This provides funds to give low and medium-income homeowners and landlords a rebate of up to $8,000 on qualifying heat pumps. The bill also provides additional rebates to upgrade electrical panels, ventilation, and home wiring.
Specific upgrades eligible for rebates include heat pumps for heating and cooling, heat pumps for water pumps, electric load service center upgrades, insulation, air sealing, and ventilation, and electric wiring.
How Can Air Comfort of KY Help?
Air Comfort of KY works hard to inform all customers about these new savings opportunities.
By working with local leaders to fully understand the rules and requirements, we are able to help customers make the best, most informed decisions. Air Comfort of KY is committed to providing every customer with up-to-date information and cutting edge energy efficient equipment.
We have all of your solutions for maintenance, repair, and new equipment installation. Contact Air Comfort of KY today to take advantage of these amazing energy saving benefits.