The Heating Efficiency and Affordability Tax Relief (HEATR) Act is a significant bill for energy-conscious consumers. This legislation provides tax incentives for consumers using qualifying heat pumps. While this legislation has not become a law yet, learning about it helps you stay aware of changing attitudes toward climate change and the reflection in legislation. As climate issues become an increasing concern for the government, you can expect to see an increase in energy-efficient HVAC legislation. Consumers and manufacturers should prepare for a greater demand for energy-efficient HVAC products and an increase in costs for producing and maintaining older, less efficient models. With the government making energy-efficient HVAC options more affordable, you can begin investing in your home, reducing your carbon footprint and creating a more sustainable future.

Understanding the HEATR Act

The HEATR Act is a piece of legislation that establishes incentives for the manufacturing of energy-efficient heat pumps and heat pump water heaters. The bill was introduced in Congress in 2022, but never received a vote or ultimate passage. The HEATR Act outlines specific tax credits for qualified heat pump units. If a taxpayer installs a qualifying heat pump, they receive a tax credit according to the specific legislative guidelines. The heat pump must meet the listed specifications and requirements of the Energy Star geothermal heat pumps and air-source heat pumps. For instance, these are a few of the qualifying units:

1. Consumer unitary heat pumps: Consumer unitary heat pumps that meet all Energy Star requirements and have a capacity of 22,000 British thermal units (BTUs) or more per hour can receive a tax credit of $1,000.
2. Industrial heat pumps: Industrial heat pumps receive tax credits equivalent to their heating capacity. Pumps with a capacity of 2,400,000 BTUs or less receive a credit of their heating capacity multiplied by 3.6 cents. Those with capacities greater than 2,400,000 BTUs get a credit of this measurement multiplied by 1.8 cents.
3. Consumer and commercial heat pump water heaters: Consumer heat pump water heaters with capacities of 55 gallons or less have a tax credit of $600. Those with capacities of more than 55 gallons receive a tax credit of $800. Commercial heat pumps are eligible for a tax credit of the heater's capacity multiplied by 2.4 cents.

Heat pumps are significantly more energy efficient than alternatives. They use less energy to provide the same amount of heating and cooling. They also reduce indoor air pollution and greenhouse gas emissions, resulting in decreased carbon footprints.

Benefits of the HEATR Act

The HEATR Act amends the Internal Revenue Code of 1986 with the new heat pump incentives. Key benefits of the bill include:

• Expanding access to heating solutions: The HEATR Act prioritizes the manufacturing of energy-efficient heat pumps. The beneficial tax credit encourages individuals to install them. An increase in heat pumps makes them more accessible for landlords, property owners and residents. The more available these items are, the more likely landlords and homeowners will choose them.
• Introducing new job opportunities: The bill also encourages new job creation for HVAC manufacturers and providers. HVAC manufacturers can assemble these units within the United States, providing new job and training opportunities for professionals. In addition, HVAC service providers can promote and sell approved heat pumps, meeting the demands of energy-conscious consumers.
• Lowering national carbon emissions: Widespread implementation of heat pumps and other energy-efficient options can lower household carbon emissions across the United States. Traditional HVAC systems generate and use more energy to heat and cool homes, resulting in higher energy bills and increased carbon emissions. In contrast, heat pumps transfer energy throughout homes, creating a highly efficient solution. Studies prove that heat pumps reduce greenhouse gas emissions by 20%, creating a significant difference in carbon footprints and energy costs.

Navigating the HEATR Act as a Consumer

It's important to note the HEATR Act was introduced in a Congress session, but never brought to a vote or officially passed into law. Because it wasn't made official, the proposed tax credits do not apply to consumers or commercial heat pump users. However, the HEATR Act signifies an essential shift toward more sustainable legislation. As concerns about climate change increase, legislative bodies are more likely to increase legislation about energy efficiency. Electricity generated by burning fossil fuels releases greenhouse gases into the air, trapping the sun's heat within the earth's atmosphere. High greenhouse gas quantities increase the earth's temperature, which has negative impacts on the environment. Catastrophic events like floods, wildfires, storms and hurricanes have steadily increased as a result. Lowering greenhouse gas emissions can help mitigate some of these disastrous climate change effects. By switching to more energy-efficient options like heat pumps, global consumers can decrease their carbon footprints. Electric systems burn less fossil fuels, decreasing overall carbon emissions. Federal and international governments can pass more legislation like the HEATR Act to incentivize consumers to use energy-efficient solutions. For example, the IRS has passed acts that afford tax credits to qualifying buyers of electric vehicles. This act is similar to the HEATR Act because it encourages consumers to purchase energy-efficient options.

How to Make More Energy-Conscious HVAC Decisions

Consumers can use the HEATR Act as an influence to switch to more energy-efficient options for heating, cooling and ventilating their residences. You have many ways to decrease your carbon footprint and make a positive environmental impact, such as:

• Identifying energy-efficient products: Consumers can look for more energy-saving HVAC choices when selecting new or replacement HVAC options. For instance, some products have the Energy Star label, which signifies they meet specific energy efficiency requirements. Opting for energy-efficient options decreases your household's overall carbon emissions.
• Accessing consumer incentives and rebates: You can also research other rebate programs to find other opportunities for tax credits. These rebate programs let you decrease your commercial or residential property's carbon emissions and receive tax benefits in return.
• Incorporating energy-saving practices at home: In addition to choosing energy-efficient units, you can adopt greener practices when using HVAC and other electricity-generating systems. Minimize time spent in the shower, combine washing machine loads to lower usage and turn off lights and appliances when not in use.
• Calculating cost savings and environmental impacts: Keeping track of your overall electricity use and expenses is an excellent strategy to stay aware of your environmental impact. Try noting each time you use an electric appliance and the duration. Then, look closely at your energy bill for the month. Search for ways to reduce your typical energy use and monitor how your electric bill changes in the following weeks. This technique helps you save money and reduces your environmental impact.

Browse Energy-Efficient Products From Ingram's Water & Air

Consumers and HVAC professionals can use many techniques to increase sustainability in residences. By taking an active role in conservation efforts, you can make a difference in the fight against climate change. Installing energy-efficient products in your home or commercial property is an excellent way to decrease your carbon footprint and move toward change. Browse Ingram's Water & Air energy-efficient products today to increase your sustainability now.