Inflation Reduction Act
Explore the Inflation Reduction Act With Aero Energy!
With the federal government’s passing of the Inflation Reduction Act (IRA) you may be eligible for savings when you upgrade your home’s HVAC system. We’ve created this page to serve as a resource for our customers where we will continue to post information on the IRA as it becomes finalized state by state. The core programs outlined in the IRA include:
- High-Efficiency Electric Home Rebate Program
- Energy Efficient Home Improvement (25C) Tax Credit
- HOMES Rebate Program
About the IRA:
Homeowners are poised to benefit greatly from the IRA when they choose to upgrade their home’s HVAC systems. This legislation, designed to combat rising inflation and promote energy efficiency, offers benefits to those who invest in more efficient heating and cooling solutions. Homeowners can enjoy reduced energy consumption, resulting in lower utility bills and long-term cost savings when they upgrade their systems. The IRA also includes tax incentives and rebates for energy-efficient home improvements which makes it more affordable for homeowners to upgrade to these high-efficiency HVAC systems. By reducing your home’s energy consumption with a new HVAC system you are also able to support green initiatives and reduce greenhouse gas emissions.
Information on the components of the IRA:
Information around the implementation and execution of the IRA continues to develop state by state, but we are working to stay up to date with the latest developments to ensure our customers are able to benefit from the savings available. We’ve outlined some of the core components below:
- Energy Efficient Home Improvement (25C) Tax Credit – This program serves as a expansion of an existing tax credit from 10% to 30% up to $2,000 when installing a qualified heat pump. These systems must meet or exceed the highest performance tier defined by the Consortium for Energy Efficiency.
- High-Efficiency Electric Home Rebate Program – This program is intended to support low to middle income households with the allocation of $4.5 billion dollars for home energy improvements.Households with incomes up to 80% of the local area median income can qualify for a complete reimbursement of up to $8,000 for the expenses incurred in installing a heat pump. This tool should help you identify your income level for your area.
- HOMES Rebate Program – Households that implement energy efficient upgrades are able to benefit from energy reduction rebates. A home with an annual energy reduction of 20% is eligible for a rebate up to $2,000. A home with an annual energy reduction of 35% is eligible for a rebate up to $4,000. These reductions are based on modeled energy savings (measured in kWh, or kWh-equivalent).
Please give us a call if you’re interested in discussing any of these items further!
What systems are eligible?
At Aero Energy, we offer free estimates on heat pumps across a variety of product types. Homeowners interested in upgrading their HVAC systems can benefit from Aero Energy’s expertise and customer-centric approach. Whether they are considering Ruud, Rheem, Mitsubishi Electric, or a different brand altogether, we provide detailed estimates tailored to each of our customer’s needs. Aero Energy is proud to serve as a Ruud & Rheem Pro Partner as well as a Mitsubishi Diamond Preferred Dealer and will provide you the most competitive pricing available across these brands. While the IRA is composed of numerous components, the focus of this page is primarily on heat pump installations. If you would like to inquire about other systems that may be covered under the IRA, an Aero Energy service team member would be happy to point you in the right direction.