Written on: September 22, 2022 by ICM
In the wake of the recently signed Inflation Reduction Act, Lennox International Inc. has released a statement about what the new legislation means for homeowners around the country. The $740 billion climate and health care bill aims to put the U.S. on a path to emissions reduction by investing in climate protection and offering eligible homeowners access to cost-saving options.
Many top-of-the-line Lennox Residential home comfort products are eligible for the rebates and tax credits introduced by the Act, offering great energy- and cost-saving opportunities to homeowners, the company said.
“For 127 years, Lennox has led the industry by offering the highest performing and most energy-efficient products,” said Alok Maskara, CEO at Lennox International. “The federal government is making a substantial investment in electrification, which is a significant step to reducing emissions and combatting climate change. As these new programs and incentives become available, we’re committed to supporting Lennox dealers as they provide homeowners with cleaner, cost-effective product solutions for their homes.”
High-Efficiency Electric Home Rebate Program (HEEHRP)
The Inflation Reduction Act implements the High-Efficiency Electric Home Rebate Program (HEEHRP), which provides rebates up to $14,000 per household, including up to $8,000 for installing Energy Star qualified heat pumps, up to $4,000 for electrical panel upgrades, up to $1,600 for home insulation and sealing, and up to $2,500 for home electrical wiring improvements. Eligibility and the rebate amount depend on household income.
Overall, the U.S. government appropriated $4.5 billion of funds for this program and will distribute the funds to state energy offices to administer the rebate program. The duration of the program will depend on the amount of funds available within each state and the number of rebates distributed.
Energy Efficient Home Improvement Tax Credit (25C)
The renewed Energy Efficient Home Improvement Tax Credit (25C) increases the tax credit limit for installing CEE Top-Tier high-efficiency equipment – such as heat pumps, central air conditioning systems, furnaces, hot water boilers and more – and extends the offering through 2032.
The 25C credit has an annual cap of $1,200 – including up to $600 for a qualified air conditioner or gas furnace – or up to $2,000 with a qualified heat pump, heat pump water heater or boiler. There are no income requirements for this tax credit, and it cannot be combined with other federal programs such as the HEEHRP. However, the 25C tax credit may be eligible to combine with local or utility rebates.
Homeowners who had eligible equipment installed on or after Jan. 1, 2022, may be eligible for retroactive tax credits under this program. To confirm if a recent installation qualifies, please follow these steps:
1) Visit Lennox.com to view updated tax certifications.
2) Contact a local Lennox dealer with questions.
3) Confirm tax credit eligibility with a tax professional.
All Dave Lennox Signature® Collection products in the Ultimate Comfort System qualify for the tax credit, and Lennox boasts a broad assortment of Energy Star® qualifying products eligible for the rebate program – including the SL25XPV, the most efficient heat pump on the market with a SEER rating up to 24, the SL28XCV, the most efficient air conditioner on the market with a SEER rating up to 28, and the SLP99V, the most efficient furnace on the market boasting an efficiency rating of up to 99%.