New Heat Pump Rebates up to $8,000 for Californians!

HEEHRA: Your Guide to the New Heat Pump Rebates

The High-Efficiency Electric Home Rebate Act (HEEHRA) was passed in Congress in 2021 as part of the Inflation Recovery Act. The goal of the 10-year program is to encourage homeowners to switch to electric appliances such as heat pumps in hopes of reducing carbon emissions by 40% by 2030. Implementation was left to state agencies. California has finally rolled out its implementation program, allowing us to enroll for the rebates.

California’s Implementation: Getting Started with the Program

Unlike state and utility rebates, HEEHRA applications are “means-tested.” Amount and eligibility depend on household income compared to the local median income as calculated for the county of residence. For Los Angeles County, median household income is $105,700 per year.

Eligibility and Income Brackets: How Much Can You Save?

If your household income is less than 80% of this amount (i.e. under $84,456 for LA County), you may receive the maximum heat pump rebate, covering your new heat pump at 100% up to $8,000. If your household income is 81-150% of your area’s median income (between $84,456 and $158,550), you may receive up to 50% off the heat pump’s cost up to $4,000. You’re not out of luck if your household income exceeds 150% of your area’s median income. These homeowners can receive a 30% tax credit of up to $2,000 on new heat pumps.

Alternative Heating Solutions: When Heat Pumps Make Sense

Most homes in the San Gabriel Valley rely on gas furnaces rather than heat pumps to keep them toasty comfy in the winter, and that is usually the better choice. But for ADUs (auxiliary dwelling units, or “granny flats”) townhomes, room additions or other specific applications, a heat pump can be just the ticket. If it’s time to turn up the heat at your home and you have questions about what equipment fits best to your residence and your budget, this might be the time to call the air pros at Air-Tro.