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Tax credits for heat pumps and HVAC upgrades in Tampa

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If you’ve been considering an HVAC upgrade or heat pump for your home, you will be interested to know that the Inflation Reduction Act (IRA) offers significant tax credits and rebates that can help you make the upgrades to lower your carbon footprint and make your home more energy efficient. These incentives will help Tampa homeowners:

  • save money on monthly energy bills
  • receive huge rebates and tax incentives
  • have a cleaner, healthier indoor air environment

You can reduce the amount of energy your home uses and save money on your utility bills in the long run by replacing old, outdated, and inefficient heating and cooling systems and equipment.

Savings on heat pump and HVAC upgrades

A heat pump offers significant savings over a furnace/air conditioner combination system. Heat pumps can save the average American homeowner around $10,000 over 15 years.

The Inflation Reduction Act includes certain tax credits and rebates that can save you money. Tax credits are available now (to be applied when you file next year) and rebates will be available on equipment purchases and installation later this year.

Here are the tax credits included in the IRA that you should look into:

Heat Pumps

Heat pumps essentially replace two systems—a furnace and an air conditioning system—and as such are much more energy efficient. A heat pump system also offers some advantages over other types of HVAC systems.

  • It saves you money and space, since it is one unit doing both jobs.
  • Heat pumps require a yearly system check. This can be done by the homeowner, but we recommend having an HVAC pro from Integrity Home Solutions come out and do an inspection.
  • Because no fossil fuels are used to run a heat pump, there are no fumes being released into the air. This is better for both the environment and your wallet.

Air Conditioner

If you don’t go with a heat pump, the latest air conditioners can save you significant money on your energy bill, in addition to reducing carbon pollution. Ask the HVAC pros at Integrity Home Solutions what they recommend for homeowners in Tampa. Give us a call at 239-420-7561.

Furnace

Depending on the structure of your home, a heat pump may not make sense for you. In this case, an energy efficient furnace may be the right solution. If you are in the market for a furnace upgrade, you can save up to $600 with the tax credits included in the Inflation Reduction Act. Give Integrity Home Solutions a call at 239-420-7561 to have a pro assess your HVAC system and make recommendations.

Heat pump and HVAC tax credits and rebates

Energy Efficiency Home Improvement 25C Tax Credit

One of the things the Inflation Reduction Act did was to increase the existing 25C tax credit to cover 30% of the total cost of new energy efficient qualified systems. This went into effect on January 1, 2023 for all homeowners, so any qualifying upgrades you make this year are eligible for this credit when you file your 2023 taxes. 

When you install a heat pump or upgrade your HVAC with Integrity Home Solutions in 2023,  you will be able to deduct 30% of your total costs when you file your taxes next year. The total tax credit cap is $3,200 in tax credits, and the max for a heat pump is $2,000.  

Home Owner Managing Energy Savings (HOMES) Whole House Rebates (The HOMES Rebate Program)

In addition to the 25C program, the Inflation Reduction Act also offers the HOMES rebate. Available later this year, the HOMES rebate is a whole-home, performance-based rebate, meaning that the more energy you save by making upgrades, the more money you get back.

All Tampa homeowners qualify for the HOMES Rebate. This program provides rebates based on the percentage of energy savings, capping at $8,000 for low- to middle-income households earning less than 80% of area median income who cut energy use by 35%.

Contact Integrity Home Solutions at 239-420-7561 to schedule an appointment and see how you can save money with a heat pump or other HVAC upgrade and take advantage of the HOMES Rebate Program.

Important: Integrity Home Solutions cannot offer financial or tax advice. Please consult your tax professional for information regarding the tax credits and rebates offered by the IRA.

High-Efficiency Electric Home Rebate Act (HEEHRA)

The other rebate program is the High-Efficiency Electric Home Rebate Act (HEEHRA), which offers as much as $14,000 per year in discounts of purchases and installation for energy-efficient electrical projects. HEEHRA discounts are capped at 50% of qualifying costs for Tampa households making between 80% and 150% of area median income. For households below that income threshold, HEEHRA covers 100% of qualifying costs up to $14,000.

Like the HOMES rebate program, funds for the HEEHRA will become available later in 2023, depending on Department of Energy guidelines and state implementation.

NOTE: The HOMES rebate cannot be combined with the HEEHRA rebates, but can be combined with the Inflation Reduction Act tax credits.

Contact Integrity Home Solutions at 239-420-7561 and schedule an appointment to see how you can upgrade your house and save with the HEEHRA or HOMES rebates.

Integrity Home Solutions has your HVAC and heat pump answers

The IRA rebates and incentives apply to heat pumps to heat and cool your house, HVAC upgrades, and many other energy efficient home upgrades. Let Integrity Home Solutions help you choose the right system for your home and work with you on what IRA tax rebates apply. Contact us today at 239-420-7561 to make an appointment or ask us questions you may have about how you can take advantage of the Inflation Reduction Act.