New HVAC regulations are coming into effect soon, and people are wondering, what exactly will this mean for them?
We’re here to answer that, from our perspective!
What is the Inflation Reduction Act?
First, the Inflation Reduction Act is aimed at reducing inflationary pressures in the economy. One of the ways it does this is by capping the prices of certain goods and services that are subject to inflation. This includes things like gas, electricity, and home heating costs.
The Act is also designed to encourage businesses and individuals to invest in energy-saving or more energy-efficient technologies. This will help reduce the overall demand for energy, which should lead to lower prices.
Finally, the Inflation Reduction Act includes several tax measures that are intended to offset the impact of inflation on households. These include things like the carbon tax credit for businesses, and the home energy tax credit, for YOU!
So, how will this affect you?
The impact of the Inflation Reduction Act on home heating costs is not yet known. Although many believe it should lower energy costs, some experts believe that the act could lead to higher energy prices and therefore increased home heating costs. This is because the Act may make it more expensive for companies to produce energy, which could be passed on to consumers in the form of higher prices.
Heat pump and other $1,000+ credits!
However, one undeniably great thing about the Inflation Reduction Act for consumers is that it provides several tax incentives. These are for things like energy-efficient windows, doors, and insulation. But more importantly, there are also tax credits for efficient heat pumps! Depending on your income, you could get up to $8,000 back from the government just for installing a heat pump, and even if your income doesn’t qualify you for the full credit, you may still qualify for a 30% tax credit up to $2,000. Or if you are in the market for a new high-efficiency furnace and air conditioning system qualifying systems earn homeowners up to $500 in tax credits.
Final thoughts
While the impact of the Inflation Reduction Act on home heating costs is uncertain, there are several reasons to believe that it will ultimately lead to lower energy bills for households. And, with the bonus of tax incentives, there’s never been a better time to upgrade to an energy-efficient heating and cooling system!
Extra, very important info about SEER2
P.S., We’ll also be keeping you in the know about SEER2, the new federally mandated minimum efficiency rating for residential air conditioners and heat pumps. This law, which goes into effect on January 1, 2023, will INCREASE heating and cooling costs next year because manufacturers will only be able to sell units that meet the new, higher standard. So, if you’re thinking about upgrading your unit, you might want to do it now rather than later, before the big price hike next year.
If you have any questions about SEER2, the Inflation Reduction Act, or how it might affect home heating costs, please don’t hesitate to contact us. We’re always happy to help answer any of your questions!
Give the experts at C&C a call anytime at 732-860-2660, or contact us online.