The Inflation Reduction Act, which was signed into law in 2022 and starts to go into effect this year, creates a series of programs to help lower carbon emissions and incentivize consumers to purchase more energy-efficient appliances for their homes. The IRA contains provisions for more than $300 billion toward clean energy investments.
Now, what does the Inflation Reduction Act in Georgia specifically mean for you when it comes to HVAC equipment? We can explain in more depth the ways that you can make the IRA work for you when it comes to providing comfort for your home at a lower cost.
Please note: We are not certain of all the details about how the IRA will work in Georgia yet. The IRA provides federal funds to the states, but first, each state must set up its own program and then apply to receive the IRA funds from the US Department of Energy. We are watching developments closely to be of the most help to our customers.
The IRA’s Home Efficiency Rebates
The IRA has two programs that offer rebates for customers who purchase energy-efficient and environmentally beneficial HVAC systems. The first is the High-Efficiency Electrical Home Rebate Program (HEEHRA), and the second is the HOME Rebate Program. These programs have different criteria for qualification, and they cannot be combined, so if you’re interested in upgrading to high-efficiency HVAC, you’ll want to apply for the program that will give you the bigger rebate.
It’s important to note that these are rebates, not tax incentives. For both programs, you receive a rebate at the point-of-purchase, rather than receiving a reduction later on your taxes.
- The High-Efficiency Electric Home Rebate Act Program: To qualify for HEEHRA rebates, a household must upgrade to a qualifying HVAC system and earn less than 150% of the area’s median income (AMI). The amount of the rebate is based on the household AMI—a lower AMI means a household can qualify for a larger rebate.
- HOME Rebate Program: This is a similar rebate for the purchase of qualifying energy-efficient equipment. However, the amount of the rebate is based on modeled energy savings (i.e. how much energy the new equipment will allow the household to save) and IRS income requirements.
What Can You Potentially Save?
Depending on which program you qualify for and your household income/tax income, you can receive up to a $14,000 rebate on purchasing qualifying equipment. The rebate for a heat pump can be up to $8,000. Please remember that you cannot combine HEEHRA and HOME rebates.
How We Can Help You With the IRA
You must have professionals handle any new HVAC installation in order to qualify for the rebates—and you wouldn’t want to do any of these installations on your own anyway. We can answer any questions you may have and help you with applying for IRA rebates.
Dayco Systems has been Metro Atlanta’s choice for more than three generations. Contact us for all your commercial HVAC needs, as well as more information about IRA rebates and HVAC system installations.