Inflation Reduction Act Savings and Terms
What is the Inflation Reduction Act (and How Does it Impact HVAC Savings)?
Signed into law on August 16, 2022, the federally funded Inflation Reduction Act (IRA) gives you an opportunity to save on the cost of replacing or upgrading your heating and cooling system with higher-efficiency HVAC equipment that can reduce energy consumption and lower utility bills. The benefits of the Inflation Reduction Act are meant to be twofold:
- To help homeowners obtain higher-efficiency HVAC equipment that helps reduce energy consumption and lower utility bills
- To reduce the environmental impact of carbon emissions across the United States by 40% by 2030
Whether you’re thinking about installing a heat pump in the future or you installed one in 2022, the Inflation Reduction Act includes rebates you can use:
- The Energy-Efficient Home Improvement Credit (also known as the 25C Federal Tax Credit) took effect on January 1, 2023, and covers:
- Up to 30% or $1,200 annually for qualifying equipment
- A $2,000 annual limit for heat pumps
- The High-Efficiency Electric Home Rebate Act (HEEHRA) offers rebates up to $14,000 per household for the installation of high-efficiency heat pumps and other efficiency improvements
- The HOMES rebate program, a $4.3 billion program that is part of the IRA, isn’t restricted by income level and is based on the actual performance of your whole-home energy efficiency and electrification improvements; the HOMES rebate program cannot be combined with the HEEHRA program, so talking with your tax consultant is important to determine which program works best for you
What The Inflation Reduction Act Means For You
The IRA includes cost-saving credits and rebates when you purchase qualifying energy-efficient equipment for your home. By making improvements that electrify and/or reduce energy use, you may qualify for these tax credits and rebates while improving your home’s overall energy efficiency. Qualifying improvements include weatherization efforts, installing new electric appliances, and installing electric heat pumps.
These benefits go beyond improving your month-to-month heating and cooling bills — many new, efficient heat pump systems that qualify for the IRA have features that improve indoor air quality through built-in humidity control.
Getting started
Below you’ll find resources and tools to help you make the most of the Inflation Reduction Act, including:
- The Champion® products that qualify for this program
- Ways to stay in the know about the Inflation Reduction Act both at the federal and state government levels
- More information about HVAC financing and rebate offers that make high-efficiency equipment even more affordable
Inflation Reduction Act HVAC Products
Save Even More With HVAC Tax Incentives And Champion® Rebates
Rebates
Visit our HVAC Rebates and Savings page to find more high-efficiency Champion® equipment that qualifies for savings in your local area.
Tax Credits
Find the latest IRA updates on the IRS IRA page. Consult your tax professional for details on your ability to qualify.
Finance Options
Champion® has flexible payment options available that make high-efficiency, clean energy in your home even more affordable.