During the heat dome we had in the Pacific NW 2 weeks ago my HVAC system failed. Since it costs a fortune to have a HVAC guy come to the house, I was determined the fix the problem myself. I bought a portable AC unit for emergency use and waited for the heat dome to pass. My furnace is in the attic and it’s hot up there. I diagnosed the problem to a failure in a $7 capacitor and I should have that part by Tuesday – immediate problem solved.
My HVAC system is 18 years old and at the end of its service life, so I decided to see if the Inflation Reduction Act passed in November 2022 had any tax savings or rebates for me to mine.
There is currently a 30% Federal Tax credit on the cost of installing a qualified high-efficiency heat pump, with a limit of $2,000 to the credit. You can do the work yourself to save on the labor cost if you’re handy.
Of greater interest is an $8,000 low-to-moderate income rebate program that is administered by the states. You need an income less than 80% of your state’s median household income to qualify for the full $8,000. You can get a $4,000 rebate on an income of 80% to 150% of your states median. That 80% figure looks to be about $10,000/yr above the income that would qualify you for “free Obamacare” in my zip code. If you’re a retiree with the ability to manage your income, there could be a free HVAC system in your future. (Note: It appears that you’ll need to have a qualified contractor install the HVAC system to get the $8,000 rebate – no DIY.)
The administrative details of the $8,000 heat pump rebate program won’t be released until late 2023. I’m delaying my HVAC upgrade project until then.