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The Inflation Reduction Act—What You Need to Know

saving-money-on-energy

Right now there is plenty of talk going around about the Inflation Reduction Act (IRA) of 2022, which was signed into law in August of this year. Provisions for the IRA will go into effect next year, and people want to know how it will directly affect them and when they’ll receive the benefits. 

Because the IRA contains a provision to assist consumers with purchasing clean energy investments, including energy-efficient HVAC systems, an important part of the IRA affects our customers. We’re also paying close attention to what’s going on with the IRA and we’re still learning about its impact as well. We’ll share what we know about it in this post.

Here’s What We Know

The Inflation Reduction Act of 2022 “will make a historic down payment on deficit reduction to fight inflation, invest in domestic energy production and manufacturing, and reduce carbon emissions by roughly 40 percent by 2030.” The Act contains a provision for $369 billion (yes, billion) towards clean energy investments to help reach the climate pollution goal in less than ten years.

There are two key incentives that we’re watching closely:

  • The High-Efficiency Electric Home Rebate Act (HEEHRA): Households can qualify for this incentive based on an area’s median income. Based on eligibility, a house can claim either the full cost or up to half the cost of upgrades to qualifying high-efficiency electrical equipment such as ENERGY STAR heat pumps. The maximum rebate per household is capped at $14,000. 
  • The HOMES Rebate Program: Under this program, a house may qualify to receive up to an $8,000 rebate for the installation of high-efficiency equipment based on modeled energy savings and IRS income requirements. This program cannot be combined with HEEHRA.

Because it’s up to each state to apply for funds and set up their own programs, we don’t know for certain when these rebates will be available to homeowners; there is no set timeline yet for programs in Georgia. Some of the benefits will likely go into effect in mid-2023, while others may not emerge until 2024. However, the benefits of the IRA will extend to at least 2030. 

What This Means for You

If you aren’t currently looking to install new HVAC equipment, then the benefits of the IRA will not have an immediate impact. If you are interested in making an upgrade to an all-electric heat pump, the IRA may be able to offer you a large rebate under either HEEHRA or the HOMES Program, depending on which one qualifies you for the larger rebate. 

We recommend homeowners look into the benefits of changing to an all-electric high-efficiency heat pump in the future if they qualify for these rebates. ENERGY STAR heat pumps are ideal for Georgia’s year-round climate and can help reduce your energy costs.

We will keep our customers up-to-date regarding the IRA benefits as more information becomes available, and we look forward to helping homeowners enjoy the best comfort at affordable prices.

HendrixAir, Inc. delivers friendly, five-star service, every time. Call us to find out more about making upgrades to your home’s heating and cooling. 

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