What does the Inflation Reduction Act mean for us?
The Inflation Reduction Act, recently passed by the U.S. Congress, represents the largest federal investment to fight climate change in U.S. history. Among other measures, the law offers financial incentives to consumers for the purchase and installation of high-efficiency appliances such as Mitsubishi mini split heat pumps.
The Inflation Reduction Act provides unprecedented incentives to take advantage of tax credits and rebates. Long before this law was passed, we have been specializing in the sale, installation and maintenance of Mitsubishi Electric ductless systems, a line of quiet and powerful heating and cooling solutions known for their efficiency and customized comfort. Bergeron Mechanical Systems celebrates this landmark legislation for the way it aligns with our company values of providing energy efficient heating and cooling solutions without the use of fossil fuels. We remain focused on doing our share in making the world a better, more livable place for all.
Available Tax Credits
The “nonbusiness energy property credit” is a 30% tax credit, worth up to $1,200 a year. It helps defray the price of installing energy-efficient skylights, insulation and exterior doors and windows, for example. The annual cap is higher — $2,000 — for heat pumps, heat pump water heaters and biomass stoves and boilers.
The tax credits cover project costs and apply in the year that project is finished. In legal terms, the project is completed when it is “placed in service.”
The enhanced residential clean energy credit is retroactive to the beginning of 2022. So, qualifying projects completed between Jan. 1, 2022 and the end of 2032 qualify for the full 30% credit. The enhanced nonbusiness energy property credit is available for projects finished after Jan. 1, 2023.
The Inflation Reduction Act also creates two rebate programs tied to clean energy and efficiency: one offering up to $8,000 and another up to $14,000.
Unlike some of the tax credits, these rebates provide upfront savings for consumers. In New Hampshire, hundreds of thousands of low- and moderate-income households will be eligible for these rebates.
One catch: They likely won’t be broadly available until the second half of 2023 or later, according to experts. That’s because the states, which will administer the rebate programs, must first apply for federal grants; after approval, they can start issuing rebates to consumers.
The HOMES rebate program offers up to $8,000 for consumers who cut their home energy via efficiency upgrades such as HVAC installations. Overall savings depend on energy reduction and household income level.
The “high-efficiency electric home rebate program” offers up to $14,000. Households get rebates when they buy efficient electric appliances: up to $1,750 for a heat pump water heater and $8,000 for a heat pump for space heating or cooling. Rebates from the “high-efficiency” program are only available to lower-income households, defined as those earning less than 150% of an area’s median income.
To view the up-to date status of available rebates in New Hampshire, visit www.nhsaves.org
We look forward to partnering with you!
We will share more information on the application of these incentives as they become available on our state level.
We anticipate large demand on the qualifying Mitsubishi mini split systems, so we have planned ahead. We now have plenty of units in stock, and our team is ready to install them! Now is the time to get started on the installation of an ultra-efficient, ductless Mitsubishi system while taking advantage of the incentives provided by the Inflation Reduction Act.
Financing options are available to you through our partnership with Synchrony Bank.
If you’re not financing but looking for the best possible pricing on your Mitsubishi Electric mini split solution, we are offering our popular PREBUY PROGRAM again this year! From now through October 31, 2022, with your 50% job deposit you will get:
- Fixed cost pricing with no extra fees
- A guaranteed priority time slot for installation prior to June first
- 10% savings on your installation cost
- Your first year of maintenance is free
- And a complimentary iWave M device for improved indoor air quality, installed free with every mini split unit
We will work with you and recommend a solution that fits your needs, your budget, and your year-round comfort. Take the first step now by submitting our contact form. Our initial on-site consultation is free of charge to you.