How To Save With the Inflation Reduction Act

The Inflation Reduction Act helps make high-efficiency comfort affordable while helping the environment

What is the Inflation Reduction Act?

Signed into law on August 16, 2022, the federally funded Inflation Reduction Act (IRA) gives you an opportunity to save on the cost of replacing or upgrading your HVAC system with higher-efficiency equipment that can reduce energy consumption and lower utility bills. The purpose is twofold:

  • To help homeowners obtain higher-efficiency equipment that helps reduce energy consumption and lower utility bills
  • To reduce the environmental impact of carbon emissions across the United States by 40% by 2030
Descargar la Guía IRA
(Ley de Reducción de la Inflación) en español

Whether you’re thinking about installing a heat pump in the future or you installed one in 2022, the Inflation Reduction Act includes rebates you can use:

  • The Energy-Efficient Home Improvement Credit (also known as the 25C Federal Tax Credit) took effect on January 1, 2023, and covers:
    • Up to 30% or $1,200 annually for qualifying equipment
    • A $2,000 annual limit for heat pumps
  • The High-Efficiency Electric Home Rebate Act (HEEHRA) offers rebates up to $14,000 per household for the installation of high-efficiency heat pumps and other efficiency improvements
  • The HOMES rebate program, a $4.3 billion program that is part of the IRA, isn’t restricted by income level and is based on the actual performance of your whole-home energy efficiency and electrification improvements; the HOMES rebate program cannot be combined with the HEEHRA program, so talking with your tax consultant is important to determine which program works best for you

What the Inflation Reduction Act means for you

The IRA includes cost-saving credits and rebates when you purchase qualifying energy-efficient equipment for your home. By making improvements that electrify and/or reduce energy use, you may qualify for these tax credits and rebates while improving your home’s overall energy efficiency. Qualifying improvements include weatherization efforts, installing new electric appliances and installing electric heat pumps.

These benefits go beyond improving your month-to-month heating and cooling bills — many new, efficient heat pump systems that qualify for the IRA have features that improve indoor air quality through built-in humidity control.

Getting started

Below you’ll find resources and tools to help you make the most of the Inflation Reduction Act, including:

  • The Luxaire® products that qualify for this program
  • Ways to stay in the know about the Inflation Reduction Act both at the federal and state government levels
  • More information about HVAC financing and rebate offers that make high-efficiency equipment even more affordable

Save even more by combining tax credits and rebates from Luxaire®

Dollar icon enclosed within a cloud with sharp edges REBATES

Visit our Rebates and Savings Center to find more high-efficiency Luxaire® equipment that qualifies for savings in your local area.

Piggy bank icon TAX CREDITS

Find the latest IRA updates on the IRS IRA page. Consult your tax professional for details on your ability to qualify.

Dollar icon enclosed in two curved arrows forming a circle FINANCE OPTIONS

Luxaire® has flexible payment options available that make high-efficiency, clean energy in your home even more affordable.

Homeowner Resources

White House Clean Energy Page
See how the Inflation Reduction Act can save you money on HVAC and beyond.
State Energy Offices
Quickly find your local state energy office and find out about state-specific energy programs.
ENERGY STAR® Homeowner Tax Credits
Visit this page to find ENERGY® STAR-certified equipment that qualifies for tax credits through the IRA.

Contractor Resources

Inflation Reduction Act Guidebook
Our IRA guidebook helps contractors maximize relevant programs found within the Inflation Reduction Act, how opportunities affect homeowners and HVAC specifics of the act itself.
Webinar: The Inflation Reduction Act: Getting You Prepared for 2023
In this webinar, Chris Forth, VP of Regulatory, Codes and Environmental Affairs at Johnson Controls, shares information on key HVAC clean energy programs, including the 25C Federal Tax Credit, the HOMES Rebate Program and HEEHRA.
Podcast: New HVAC Tax Incentives
In this ACHR News podcast, Chris Forth, VP of Regulatory, Codes and Environmental Affairs at Johnson Controls, discusses new HVAC tax credits included in the Inflation Reduction Act.

Find a Luxaire® Dealer

Your local Luxaire® dealer can help you determine how to make the most of the Inflation Reduction Act by finding the perfect efficiency updates for your home.

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