{"id":1626,"date":"2023-01-27T09:38:37","date_gmt":"2023-01-27T14:38:37","guid":{"rendered":"https:\/\/dev.pirg-test.com\/michigan\/edfund\/resources\/heat-pumps-how-federal-tax-credits-can-help-you-get-one\/"},"modified":"2023-04-04T19:22:26","modified_gmt":"2023-04-04T23:22:26","slug":"heat-pumps-how-federal-tax-credits-can-help-you-get-one","status":"publish","type":"resource","link":"https:\/\/dev.pirg-test.com\/michigan\/edfund\/resources\/heat-pumps-how-federal-tax-credits-can-help-you-get-one\/","title":{"rendered":"Heat pumps: how federal tax credits can help you get one"},"featured_media":45401,"template":"","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":false,"_yoast_wpseo_meta-robots-nofollow":false,"_yoast_wpseo_opengraph-title":"","_yoast_wpseo_opengraph-description":"","_yoast_wpseo_twitter-title":"","_yoast_wpseo_twitter-description":""},"campaign_tax":[133],"display_option":[],"issue_tax":[],"resource_type":[69],"region_tax":[],"state":[2],"topic_tax":[103,105,109,126],"class_list":["post-1626","resource","type-resource","status-publish","hentry"],"acf":{"details":{"helper_taxonomies":{"topics":[103,109,126,105],"collection":false,"press_type":false,"person_type":false,"resource_type":69,"event_type":false,"campaigns":133,"department":false,"level":false,"states":[2],"act_option":false,"display_option":false,"primary":{"topic":105}},"subtitle":"","excerpt":"In this video, experts explain how new federal clean energy tax credits passed under the Inflation Reduction Act can help you install a heat pump.","featured_image":45401,"caption_override":"","updated_on":null,"sidebar_action":[],"related_event":[1630],"hide_hero_image":false,"location":"internal","external_link":{"publication_name":"","url":""},"file":null,"sidebar_action_query_string":""},"helper_people_group":{"title":"Authors","entities":[{"type":"dynamic","dynamic_person":{"site":15,"people":"112"},"information":{"name":"","image":null,"role":"","biography":"","contact":{"twitter":"","facebook":"","email":"","phone":""}}},{"type":"dynamic","dynamic_person":{"site":44,"people":"1694"},"information":{"name":"","image":null,"role":"","biography":"","contact":{"twitter":"","facebook":"","email":"","phone":""}}},{"type":"dynamic","dynamic_person":{"site":4,"people":"203"},"information":{"name":"","image":null,"role":"","biography":"","contact":{"twitter":"","facebook":"","email":"","phone":""}}}]},"helper_downloads":{"title":"Downloads","files":null},"page_layout":[{"acf_fc_layout":"layout_wysiwyg","_acfe_flexible_toggle":"","component_wysiwyg":{"content":"https:\/\/youtu.be\/xhm0HmXoZTI","":null}},{"acf_fc_layout":"layout_wysiwyg","_acfe_flexible_toggle":"","component_wysiwyg":{"content":"Kaiba White, the Energy Policy and Outreach Specialist with Public Citizen, and Gracie Coates, energy advocate at Environment Texas Research & Policy Center, explain heat pump technology and how the clean energy tax credits and rebates can help you get one.\r\n

Why would you get a heat pump?<\/h3>\r\nHeat pumps are the most efficient way to heat water, heat and cool your home (in almost all cases), and run a clothes dryer. They are 3-5 times more efficient than most current fossil fuel heating systems. Heat pumps save you money and are the most climate friendly option.\r\n

How do heat pumps work?<\/h3>\r\nHeat pumps act as both air conditioners and heating units for your home. This can apply to both central-style heat pumps that can utilize your ductwork and mini-split units that can be installed in a wall or as window units.\r\n\r\nWhen they are in air conditioning mode, they use low-pressure fluid to suck the heat out of your home and dump that into the air outside. As a heating unit, it pulls in warm air to heat your home. The heat pump switches back and forth if it\u2019s in heating or air conditioning mode.\r\n\r\nFor folks who live in colder areas concerned about heat pumps not working because it\u2019s cold outside, the reality is that there\u2019s always heat in the air.\r\n\r\nHeat pumps are so efficient because heat pumps are just moving heat around. Instead of burning a fossil fuel like natural gas to create heat and blow that throughout your house, heat pumps are concentrating and moving heat throughout your home, which takes a lot less energy to do.\r\n

What are heat pump water heaters?<\/h3>\r\nHeat pump water heaters work exactly like a heat pump, except it has a heat exchange coil in the tank that heats the water.\r\n\r\nA lot of heat pump water heaters that are tank style do also have a backup resistance heat so if you\u2019re using a lot of water for some reason, you can get a little extra boost through that resistance heating, but that\u2019s only there as a backup option. In normal operating mode, you\u2019ll get the high efficiency of these water heaters.\r\n\r\nMany of these are wi-fi connected so you can turn on or off or adjust the heat from your phone. The wi-fi feature also works with demand response programs where an electric utility pays a customer to reduce their energy demand (commonly used for air conditioners) and can be used for water heaters.\r\n

Paying for your heat pump<\/h3>\r\nWhen it comes to paying for your heat pump, there are two ways the Inflation Reduction Act can help: tax credits and rebates.<\/span>\r\n\r\nTax credits for heat pumps:<\/strong> Starting in 2023, you are eligible for a federal tax credit that will <\/span>cover 30% up to $2,000 of the heat pump cost and installation<\/span><\/a>. This tax credit is capped at $2,000 per year. If you are considering multiple energy upgrades, spacing those projects out over time can help you maximize the annual incentives between now and when they expire in 2032.<\/span>\r\n\r\nRebates for heat pumps:<\/strong> If you meet the household income requirements, you may also be able to use rebates to get a heat pump. <\/span>The rebates will all go through the state governments \u2014 thus, it\u2019ll vary from state to state what agency is administering those rebates.<\/span>\r\n