Tax Credits and Rebates Are Available for Energy Efficient Upgrades
If homeowners are looking to reduce their energy costs and save money, they may be eligible for federal tax credits or rebates if they make energy-efficient home upgrades. Whether it’s replacing an old air conditioner or switching to a more efficient heating system, several initiatives in place can help offset the cost of these projects. This blog post will discuss the Inflation Reduction Act and the tax credits and rebates it offers specifically related to installing energy-efficient ACs, heaters, or heat pumps so that homeowners can take advantage of them and get the most out of their investments.
The Inflation Reduction Act
Because of the rapid increase in prices over the last couple of years, the U.S. Congress signed into law a bill called the Inflation Reduction Act of 2022. Its provisions outline both tax credits (money credited toward taxes owed) and rebates (money received back after the purchase of an item) on energy-efficient heating and cooling systems installed after January 1st, 2023.
This incentivizes the investment in a new air conditioner, heater, or heat pump, as well as helps to control costs for homeowners. While these are not the only tax credits and rebates in the bill, they are the relevant parts for homeowners needing an HVAC upgrade.
What Qualifies?
Of course, because the Inflation Reduction Act is trying to promote clean energy, only certain systems qualify for the available funds. Income requirements may also determine the percentage of money received back on the purchase. Some types of systems that are eligible for tax credits and rebates include the following:
- Heat pumps: This type of HVAC system is highly efficient and merely moves heat from the outside in or vice versa. They have no heat source, so they use much less energy and save on monthly energy bills. They can be used for both heating and cooling.
- Gas furnace: These heating systems use fossil fuels but provide a “clean burn” with few emissions.
- Energy Star rated: Certain heaters and air conditioning units are considered highly efficient and have received the “Energy Star” rating. This certification likely qualifies them for a tax credit.
A homeowner should discuss the possibilities for their home with a reputable HVAC contractor who can point them to heaters and air conditioning systems that are right for their home and qualify for the IRA funds.
Advantages of Replacing an Old HVAC System
While the money from tax credits and rebates is a bonus, there are many benefits to upgrading a home’s HVAC system with a new energy-efficient unit. Now is the time, especially if a homeowner has already been considering an upgrade. Below are the benefits of upgrading an HVAC unit:
- Increased energy efficiency
- Reduced energy bills
- More consistent temperature
- Reduced noise
- Peace of mind and comfort
About Jerry Brittingham A/C & Heat, Inc.
Jerry Brittingham A/C & Heat, Inc. has served Daytona Beach, FL, and the surrounding areas for over twenty years. They provide transparent pricing options, financing, and a membership plan. Call them today for AC, heater, or heat pump installation in Daytona Beach, FL.
