The Inflation Reduction Act passed in August 2022, is a massive bill to improve private and public infrastructure. For Florida homeowners, it offers unprecedented rebates and tax credits designed to help with electrification and weatherization projects. While some programs through the IRA are offered only to low and moderate-income households, others have no income limitations.
Find out how you could save on high-efficiency heating, cooling, appliances, and more using:
This blog looks at many savings options, other home improvements that the IRA may cover, and eligibility guidelines specific to Floridians.
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Rebate programs offer Floridians who qualify an opportunity to upgrade their heating and cooling infrastructure to save money on their monthly utility bills. Many of the rebate programs offered by the Inflation Reduction Act are aimed at electrification to reduce the number of fossil fuels used in American homes.
Installing electric heat pumps for heating and cooling is one way to save big on installation and in the long term. The Department of Energy estimates that air-source heat pumps can save you approximately 50% of your utility bill for heating, while geothermal systems are 30-60% more efficient than traditional HVAC systems.
Two separate rebate programs can add significant savings on heat pump installation: HOMES and HEEHRA.
The Homeowner Managing Energy Savings (HOMES) program offers up to $8,000 off a heat pump's installation cost, provided the contractor can prove that the system will save the homeowner a minimum of 20% on their electric costs for running the new unit. Contractors receive additional incentives to offer services in disadvantaged communities.
The HEEHRA rebate program offers low- and moderate-income households discounts on more than just heat pumps. For heat pumps alone, homeowners can receive a rebate of up to $8,000, but the total amount available through HEEHRA is a maximum of $14,000. The extra rebate funding could help pay for panel and wiring upgrades when installing a heat pump or other electrification projects.
Not every homeowner will qualify for the rebate programs, and those that don't can take advantage of the IRA tax credit. The 25C Non-Business Energy Property Tax Credit allows homeowners to deduct up to 30% of the heat pump installation cost up to a maximum value of $2,000 per year. Other electrification projects may also be eligible for the program at a maximum of $1,200 annually.
In addition to heat pump installations, Florida homeowners can apply for HOMES or HEEHRA rebates to help with ventilation and insulation services, like duct sealing.
The Weatherization Assistance Program also offers Floridians an opportunity to make substantial home upgrades, often with no or minimal out-of-pocket costs. Florida residents must apply through their local agency to receive benefits through a grant. Some upgrades available with a WAP grant include installing weather stripping, insulation, water heater wraps, duct sealing, and similar services.
Before any work starts, homeowners must have an energy audit to determine the best ways to reduce their energy use through approved weatherization upgrades. Once the audit is complete, the administering agency may approve a grant paid to a partnering installer to handle the upgrades. The usual maximum benefit through this program is $2,600 per home.
The 25C tax credit allows you to deduct up to $1,200 for any project that includes upgrading exterior windows and doors, which can help reduce drafts and improve your home insulation. It also includes duct sealing and insulation.
If you're wondering if you can save money with the Inflation Reduction Act in Florida, the answer is yes! How much you can save will depend on your financial situation, the location of your home, and other factors that the state may introduce as it rolls out these programs.
Eligibility requirements vary depending on the program. However, everyone who has approved work on their home to improve energy efficiency qualifies for the 25C tax credit. The rebate programs have stricter eligibility rules and may limit the amount available based on income.
When applying for HEEHRA rebates, homeowners in low-income households qualify for a rebate of 100% of the eligible product costs up to the maximum covered for each project. Low-income households earn less than 80% of your area's median income. For example, less than 80% would be $44,545 for a single person in Florida, while a family of three could have a combined income of up to $60,046 and still qualify.
Moderate-income households earning between 80-150% of the area's median income still qualify but at a reduced 50% rate. An MI household can get a maximum of $4,000 in rebates for heat pump installation.
The HOMES Act also offers the 50% option for high-income earners for a maximum of $4,000 in rebates.
Contact Red Cap Plumbing, Air & Electric online to schedule a consultation with our courteous and knowledgeable technicians.
We'll help you determine what rebates and tax credits are available on your heat pump installation to help you save money while we offer honest prices and treat you like family. Plus, we back up our 5-star service with ironclad guarantees.