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Inflation Reduction Act Increases Savings for 2023

Significant Tax Credits & Rebates Available for Installing Energy Efficient Equipment in Your Home

The Inflation Reduction Act, also known as the “Heat Pump Act” has been a popular topic in the home improvement industry for several years, but 2023 brings BIG changes along with a significant increase in savings for homeowners. If you’ve been considering upgrading your home’s heating and cooling system, now is the time!

One of the main benefits of the Inflation Reduction Act (IRA) is the tax credit it offers to homeowners who purchase and install new energy-efficient equipment, including heat pumps, with the goal of reducing the cost of these energy-efficient systems. This credit is called the Energy Efficient Home Improvement Tax Credit. In previous years, this credit was set at $300, and subsequently increased to $500. However, the amended tax credit that began this year for 2023, increases the tax credits as high as $600 for qualified air conditioner or gas furnace, and up to $2,000 for qualified heat pump, heat pump water heater or boiler.

A second way for homeowners to save is through the High-Efficiency Electric Home Rebate Program (HEEHRP) which provides up to $14,000.00 in direct rebates to low- and moderate-income households for installing qualified energy-efficient equipment. This equipment includes heat pumps, upgraded electrical panels, and home insulation and sealing. The breakdown of these rebates include:

  • Up to $8,000 for qualified heat pumps
  • Up to $4,000 for upgraded electrical panels
  • Up to $1,600 for home insulation and sealing; and
  • Up to $2,500 for home electrical wiring improvements

To learn more about installing new, energy-efficient equipment for your home and the significant savings available, contact our office by calling 518-868-0494 or by submitting a new inquiry online here. Our experts are available to help you navigate these changes to ensure you maximize your savings and get the right equipment for your unique home.

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