Inflation Reduction Act Instant Rebates & Tax Credits

This not only allows you to save money on purchasing the equipment, but since you’re investing in high-efficiency models, you’re also saving money on your monthly energy bills, improving your indoor air quality, and limiting your impact on the environment.

Inflation Reduction Act $8,000 Heat Pump Rebate Now Available!

Thanks to the Inflation Reduction Act, all homeowners are now eligible for instant rebates and tax credits when purchasing energy-efficient electric appliances—the largest of which is for heat pumps! Earn up to $8,000 for a new heat pump installation. The rebate or tax credit amount you can receive varies depending on your household income, so you’ll want to read the details below to check your eligibility.

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What Are You Eligible For?

Of more than $700 billion in the Inflation Reduction Act, a total of $4.5 billion has been allocated for the High-Efficiency Electric Home Rebate Act (HEEHRA) for low and mid-income households. Another $4.3 billion has been allocated to the HOMES Rebate Program for homeowners who cut their energy usage. These rebates will be distributed by the state and tribal governments and will take effect starting January 1, 2023.

Additionally, under the Inflation Reduction Act, the existing Nonbusiness Energy Property Credit was renewed for 2022 and will be restructured as the Energy Efficiency Home Improvement Credit starting January 1, 2023.

The credit in 2022 is a maximum of $500 on certain energy efficiency improvements, including central heating and air conditioning / heat pump mini split installation, air conditioners, and heaters.

Earn Up to 30% Tax Credit

The credit will equal approximately 30% of your energy-efficiency improvement costs, including labor costs, up to:

$2,000 for qualified heat pumps, heat pump water heater. $600 for qualified air conditioners and heaters.

This tax credit is available for all homeowners, but you must check if you qualify first. To qualify, you must use certain high-efficiency products and you’re only able to claim this if you owe taxes.

If you’re in the market for a new heat pump, central air conditioning unit, or heating unit, we are here to help. You can contact ACS/ American Comfort Services today! Click here

New Rebates & Tax Credits for Low-Income Homeowners

Buy Now, Save Big! Eligible Instant Rebates Up to:

$8,000 for heat pumps

$1,750 for a heat pump water heater

$1,600 for insulation, ventilation, and sealing

$4,000 for an upgraded breaker box

$2,500 for upgraded electrical wiring


Keep in mind these are just the HVAC-related rebates! There are even more rebates available for other appliances, including electric stoves. The maximum rebate you can get from everything under the HEEHRA is $14,000!


Rebates and Tax Credits for Mid-Income Homeowners

If your household earns a middle income (80% to 150% of the area’s median income), you’re eligible for the same HEEHRA rebates above, but can only receive 50% of the costs of the project rather than 100% of costs.

Just like the low-income households, remember that there are additional rebates outside of HVAC-related appliances that are available to you and that the maximum total rebate you can receive from the HEEHRA is also $14,000.

You’re also eligible for the HOMES Rebate program, but you can only receive half the amount of low-income households—an instant rebate of up to:  $2,000 for cutting your energy by 20% | $4,000 for cutting your energy by 35%

But the same limitation applies. You must choose to apply for either the HEEHRA Rebate or the HOMES Rebate. And when tax season comes around, you could potentially qualify for the Energy Efficiency Home Improvement Credit.

Rebates and Tax Credits for High-Income Homeowners

As a high-income household, you’re only eligible for the HOMES Rebate program. You can receive an energy efficient home improvement instant rebate up to: 

$2,000 or half the cost of the project (whichever is less) if you cut energy costs by 20% | $4,000 if you cut energy costs 35%

You can also receive the same Energy Efficiency Home Improvement Credit if you meet the qualifications.

Inflation Reduction Act Heat Pump Rebate
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