CABS Heating and Air Conditioning is now eligible to install systems that qualify for HEEHRA rebates through the federal government. These rebates can total over $10,000 for homeowners!
What is this long acronym, what does it mean for you, and how can you get your rebate on new HVAC equipment and other home upgrades? We dig into each of these questions in this article, in order to save you money while upgrading your home!
What is HEEHRA?
HEEHRA stands for the High-Efficiency Electric Home Rebate Act. It was part of the Inflation Reduction Act passed in 2022 by Congress and the Biden-Harris administration.
The goal is to assist low- and middle-income U.S. families with energy-efficient upgrades to their home. In the case of HVAC equipment, this applies primarily to high efficiency electrical heat pump systems.
Additional potential rebates exist for households in the form of rebates for things like windows, insulation and air seals in your home.
High-efficiency HVAC equipment saves on energy costs. For homeowners, this can be a great way to reduce energy bills. The problem, though, is the larger upfront cost to the most efficient equipment.
In the public interest, many programs exist to assist homeowners with these costs to increase the collective efficiency of American HVAC energy usage. HEEHRA is the latest of these programs, and its rollout is nationwide.
Benefits of the Program
The benefits are numerous, both to you as a homeowner and to the energy efficiency and eco-friendly HVAC status of our national energy usage.
- The rebates are instant, so they don’t take a while to process and return, which is the case with tax rebate programs.
- Low-income families can qualify for up to 100% of the costs of a system upgrade in some cases.
- The program covers a wide range of home upgrades, including windows, insulation, cooktops, heat pumps, water heaters, and other qualifying electrical upgrades.
- Income thresholds are based on an area’s median income level, which means you may still qualify depending on where you live even if you aren’t considered low-income based on national averages. This helps to account for the cost of living in different areas.
- Households that are as high as 150% of the area’s median income can still qualify for partial rebate coverage of an upgrade.
- Energy-efficient equipment can save you money on bills. Some calculations estimate an average of $500 in yearly savings for households. Over the life of your HVAC equipment, this can mean thousands in savings.
- Efficient equipment equals fewer carbon emissions, making your home (and state) more eco-friendly.
- Air quality both in your home and in the region can improve over time as a result of lower energy usage.
- The program is funded for several years, meaning you’ll be able to enjoy the benefits of the program as you continue to upgrade your home.
- HEEHRA will help low- and middle-income areas the most, which will help to spur economic growth.
The benefits are myriad and not fully covered above. The main point of interest for you, though, is likely how you can personally benefit from the program. We discuss that below.
HEEHRA Rebates
HEEHRA rebates are now being made available in some states. Each state has to individually apply to and be approved for the program. At the time of this article going live, only South Dakota had opted out of the program entirely.
California is the largest state with rebates currently available. Other states include Michigan, Georgia, New York, Arizona and a few others. Several others have submitted applications and are pending review before the program is implemented in their state.
It’s difficult to determine an exact timeline for each state, but you can check on the application status of your state with the government’s energy rebate tracker here.
HEEHRA HVAC Rebates
An allotment of $45 million dollars exists for California single-family households. These are specific to heat pump upgrades for the household.
Contractors certified in the HEEHRA rebate program, including those like CABS, then work with California authorities to identify and apply rebates for qualified households.
Rebates exist up to $8,000 for heat pump systems, for instance. Heat pump water heaters can qualify for an additional $1,750.
Total home rebates cannot currently exceed $14,000, but this means that multiple rebates may apply depending on what home upgrades you’re considering.
Multifamily Rebates
An additional $35 million is available for multifamily HVAC projects.
While the largest of the eligible equipment upgrades are related to heating and cooling (heat pumps and heat pump water heaters), other rebates exist for things like cooktops, ovens and other electrical equipment or upgrades.
While the multifamily property owner must fill out the proper application with your state’s agency (in California’s case, it’s TechClean California), a licensed HVAC contractor who works with multifamily properties can assist you if you have questions.
Getting Your HEEHRA Rebate
The first step is to determine if you qualify. You can check the TechClean California website here in CA or other state sites depending on where you live, or speak with a contractor licensed to provide HEEHRA rebates.
It’s also important to note that HEEHRA rebates aren’t the only ones you may be eligible for. Federal and state tax credits and other municipal incentives for green equipment are often available.
It can be difficult to keep track of this all yourself, but this is also why it’s important to work with a trusted contractor who is familiar with these rebates, tax breaks and incentives and can help you navigate the process to save as much money as possible.
CABS Heating and Air Conditioning has been helping Sacramento residents for years to get local energy-efficiency coupons, federal tax breaks on efficient equipment, SMUD Rebates for municipal discounts particular to the Sacramento area, and is now beginning to help customers with HEEHRA rebates!
Don’t leave money on the table when it comes time to upgrade your home services and costly HVAC system. Contact CABS Heating and Air Conditioning for your free consultation. We’ll walk you through all eligible discounts and rebates to make sure you are getting the most from your money and the most from government entities with programs to assist homeowners with home services.
