In August, the U.S. Government passed the Inflation Reduction Act, a comprehensive energy policy bill that has a record $370 billion reserved spending for climate and energy initiatives. This legislation offers several tax credits that reward homeowners for purchasing higher efficiency, ENERGY STAR®-certified and Consortium for Energy Efficiency-specified equipment.
Russell® by Rheem is working hard to ensure that homeowners are prepared for the coming tax year and will be updating this page as new information becomes available.
Here’s what you need to know about the Inflation Reduction Act:
What kinds of tax credits and rebates are available to homeowners?
The Inflation Reduction Act of 2022 includes several tax credits for the installation of high-efficiency residential heating and cooling products. These credits include:
Nonbusiness Energy Property Credit (Tax Section 25C)
Effective January 1, 2023, this tax credit gives homeowners equal to 30% of installation costs for the highest efficiency tier products, up to $600 for qualified air conditioners and $600 for qualified furnaces, as well as up to $2,000 for qualified heat pumps.
Residential Energy Efficient Property (Tax Section 25D)
This tax credit gives homeowners equal to 30% of installation costs for ENERGY STAR geothermal heat pumps until 2032, which drops to 26% in 2033 and 22% in 2034.
High-Efficiency Electric Home Rebate Program
An income-dependent rebate to eligible homeowners. Homeowners can receive:
- Up to $8,000 for all-electric heat pumps
- Up to $4,000 for electrical load service center upgrade
- Up to $2,500 for electric wiring
- Up to $14,000 maximum for all eligible measures
What equipment qualifies for the credits?
Eligible products include high-efficiency air conditioners, furnaces and heat pumps. Stay tuned for more information on specific qualifying Russell by Rheem products.
Do these tax credits apply to equipment installed prior to the Inflation Reduction Act?
Confirmation incentive levels and product qualification criteria for air and water products remain unchanged through the end of 2022 and are retroactive to qualifying products purchased after January 1, 2022, and installed prior to January 1, 2023. The maximum amount an eligible homeowner may receive in federal tax credits for purchasing and installing qualifying products is 10% of the installed cost, up to $500.
To learn more about Russell by Rheem products and financing options, contact your local pro at RussellByRheem.com/Find-a-Pro