Ready to upgrade your AC unit and beat the summer heat in Phoenix? The cost of installing a high-efficiency air conditioning system is high, but you'll often save in the long run by enjoying reduced energy bills after you make the switch. And, if you need a new unit anyway, you can take advantage of several programs available to help cut your upfront costs.
Rebate programs and federal tax credits both offer unique —and limited-time—opportunities to upgrade your unit at a big discount. Phoenix-based utility companies also offer incentives since the city has established a goal of a 50% reduction in greenhouse gasses by 2030 and a carbon-neutral city lifestyle by 2050. Do your part to help while also enjoying some savings. It's a win/win!
In this blog, we'll take a look at some of the savings that may be available to you, including:
How much could you save on a new HVAC system?
Contact George Brazil today! Since 1955, we've been proud to be one of the most trusted HVAC companies in Phoenix, earning thousands of 5-star reviews. For fast and convenient scheduling for your AC installation project, call us at (602) 842-0009 or book below.
Two rebate programs are slated to help Phoenix homeowners interested in upgrading to high-efficiency HVAC solutions: HEEHRA and HOMES.
Ready to lower your carbon footprint and save money? The High-Efficiency Electric Home Rebate Act (HEEHRA) is part of the Inflation Reduction Act aimed at helping you do that. It is a 10-year rebate program that helps low to moderate-income households upgrade to high-efficiency electric appliances such as heat pumps.
Qualified HEEHRA purchases get a rebate of up to 100% of the costs to electrify homes in low-income households and up to 50% in moderate-income households. The rebate caps at $14,000. The contractor or installer also may be eligible for a rebate of up to $500. To meet the eligibility requirements for HEEHRA, your household income must be:
- Low-income: Less than 80% of your area’s median family income
- Moderate-income: 80% to 150% of your area’s median family income
In Phoenix, the median family income for the city is about $64,927 for 2021.
Where the HEEHRA program offers a direct rebate on the cost of upgrading, HOMES offers a rebate based on your resulting energy improvements. If any home renovation results in net energy savings, you may be eligible for a rebate paid directly to your contractor. The HOMES program has no income limits, so it's available to high earners, though low-income families receive up to twice the rebate amount. For moderate and high-income earners, the rebate maximum is $4,000, while low-income families can receive up to $8,000.
Your contractor will need to demonstrate your efficiency savings to qualify, and you must reach at least a 20% reduction to be eligible for any rebate amount. At George Brazil, we can model the potential savings before we start to give you a helping hand with receiving this rebate.
It's important to note that you can't combine the HEEHRA and HOMES rebate packages, and no rebate can reduce the project's cost below $0.
Federal Tax Credits
The Inflation Reduction Act also includes the 25C Non-Business Energy Property Tax Credit Program. While you can't combine HEEHRA and HOMES, you can receive a rebate program and the 25C tax credit. This program allows homeowners to deduct up to 30% of the cost of high-efficiency HVAC installations from their income. The cap on this tax deduction is $1,200 for most projects but up to $2,000 for heat pumps.
25C also applies to other projects designed to lower your emissions, including energy audits and electrical panel upgrades.
An ongoing program that's available is the Renewable Energy Tax Credit. With this program, you can receive a tax credit of up to 26% for heat pumps installed before January 2023 and up to 22% for systems installed before January 2024. Systems must be Energy Star certified to qualify for the tax credit.
Utility Company Incentives
SRP and APS, two of the largest electricity suppliers in Arizona, offer various rebate programs designed to help Phoenix homeowners save money on efficiency updates.
- Upgrading to an air-source heat pump can be $300 cheaper while the rebate program is ongoing.
- Central air conditioning upgrades can net homeowners up to $800 in savings under one program or $200 per ton under another.
- In addition to direct savings on HVAC installations, rebates are also available for installing smart thermostats, solar water heaters, LED lightbulbs, and other upgraded items.
To maximize your savings, you should schedule a Free New System Estimate with the experts at George Brazil to discuss the utility rebates available for your home.
Save on a new HVAC system with George Brazil!
At George Brazil, we stay up-to-date on all the savings available in Phoenix to give you the best price for a high-efficiency AC installation. You'll be treated like family when you hire us to help with your HVAC installation, and we guarantee you'll be 100% satisfied with our service. Call us at (602) 842-0009 or book below for fast, convenient scheduling.
If you have questions regarding program requirements, eligibility, and the latest updates on tax credits, please contact a tax professional.