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Inflation Reduction Act Guide

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The recent Inflation Reduction Act (IRA), which was signed into law in 2022 and went into effect at the start of 2023, offers excellent incentives to homeowners who are planning to purchase new HVAC equipment and make clean energy upgrades. We’re excited about helping our customers obtain energy-efficient heating and cooling systems, and we want to share how the IRA can make this goal more affordable for you.

The IRA includes programs that offer home efficiency rebates. These rebates will make it easier for customers to purchase energy-saving and environmentally beneficial HVAC systems. We’ll explain what these programs mean for you and how to qualify in Katy, TX and Houston.

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The High-Efficiency Electric Home Rebate Act Program

The High-Efficiency Electric Home Rebate Act Program (HEEHRA) is a key part of the IRA incentives for homeowners looking to upgrade to energy-efficient and environmentally beneficial equipment. To qualify for HEEHRA rebates on purchases, a household must earn less than 150% of the area’s median income.
Additionally, homeowners may also qualify for the HOME Rebate Program, which offers similar rebates based on modeled energy savings and IRS income requirements. The HOME Program cannot be combined with the HEEHRA program, so you’ll want to apply for the one that offers you the highest savings.

Energy-Efficient Heat Pumps Save Money

Heat pumps are at the center of the HEEHRA and HOME programs because they significantly reduce energy use, lower emissions, and help move the US away from dependence on fossil fuels. A heat pump works as both an air conditioner and heate. When in heating mode, it consumes far less energy than either an electric or gas furnace. Heat pumps are expensive, but thanks to the IRA many more homes will be able to afford them.

What You Can Save

Depending on your household income, you can receive a rebate of up to $8,000 on the purchase of a qualifying heat pump, and a total rebate of $14,000 per household. This online calculator will give you an idea of what you’ll save. These are only estimates, and we aren’t certain yet of how the program will work in Texas—each state must set up its own program and then apply to receive the rebate funds from the Department of Energy through the IRA.

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