What to Know About the Inflation Reduction Act of 2022
Goods and services have undeniably become more expensive since the pandemic. To combat these related challenges, President Joe Biden has signed the Inflation Reduction Act, which seeks to make certain things more affordable for lower- and middle-income families. It also aims to reduce the nation’s collective carbon footprint.
Here, one can learn more about how the Inflation Reduction Act of 2022 applies to them, including how it can make purchasing and installing certain appliances more affordable.
The Inflation Reduction Act Offers Tax Credits and Rebates
Forbes notes that contrary to popular belief, the Inflation Reduction Act of 2022 is not a single bill or law. It’s a collection of initiatives that seek to:
- Increase taxes on billion-dollar companies
- Make affording medications easier for those on Medicare
- Invest money in the Internal Revenue Service (IRS)
- Extend Affordable Care Act subsidies
- Offset the cost of purchasing and installing energy-efficient appliances
- Reduce the country’s carbon emissions by 40 percent by 2030
PR Newswire reports that some households could qualify for up to $14,000 in rebates when installing certain appliances. These appliances include heat pumps, water heaters, furnaces, and others. A household could even get a new air conditioning system.
Who Qualifies for the Benefits Offered by the Inflation Reduction Act?
Many households in the U.S. qualify for the benefits offered by the Inflation Reduction Act––including the initiative that offers tax credits and rebates on energy-efficient upgrades. One’s eligibility primarily depends on their family’s median income. Here’s what to know:
- Households making less than 80 percent of the area median income qualify
- Families making 80 percent to 150 percent of the median income can get certain breaks
- Whether a multifamily residence qualifies depends on many outside factors
One can learn more about their eligibility by checking with the U.S. Department of Urban and Housing Development. This site provides information on income limits and other elements that affect a homeowner’s options.
The Three Main Benefits of Upgrading
At its core, the Inflation Reduction Act allows homeowners to upgrade outdated appliances and get energy-efficient ones. Yet, a homeowner may wonder whether it’s worth upgrading in the first place. By getting a new furnace, heat pump, or air conditioner, one could benefit from the following:
- Saving money. The U.S. Energy Information Administration (EIA) notes that a home’s heating and cooling system requires the most energy. Energy-efficient appliances are generally cheaper to operate and maintain.
- A longer lifespan. Newer appliances on today’s market are made to last longer than their predecessors. For instance, standard tank-reliant water heaters generally last about 10 years. Yet, newer tankless water heaters can easily pass the 15-year mark with no problems.
- More features. Many of the appliances that qualify for discounts under the Inflation Reduction Act come with state-of-the-art features. For instance, some users can check their water heater’s temperature on their phones. Others can give voice commands.
About Chad’s AC Direct
Chad’s ACt Direct does it all––air filter replacement, installation––the list goes on and on. For years, these professionals have served the residents of Montgomery, Alabama, with their home improvement needs. These experts offer written estimates, itemized receipts, and prompt service. For more information about HVAC service, one can call today.