The Inflation Reduction Act (IRA) was created to provide significant investment to reduce the effects of US carbon pollution in the face of the current climate crisis. The act will benefit homeowners who make energy-efficient upgrades in the form of tax credits and rebates on new HVAC, electrical, and plumbing items, in addition to lowering energy bills
Between tax credits, rebates, and savings on your energy bill, you could potentially save upwards of $17,000 per year when you make qualifying energy-efficient upgrades to your home! And that’s not even counting how much you can save on your utility bills. Here’s a great savings calculator from Rewiring America that will show you just how much you can save by making energy efficient changes to your home.
We’re all looking for ways to save money on our taxes, right? Good news! The IRA includes tax credits for people who make energy-saving changes and upgrades to their homes, like heat pumps, energy-efficient doors and windows, solar, heat pump water heaters, and more.
We all like saving money on taxes, and the IRA has built-in credits for households making energy efficient choices starting January 1, 2023. The professionals at Precision Air can give you all the information you need about your appliance options and installation procedures when you’re ready to update.
The Energy Efficient Home Improvement Tax Credit is an expansion of the 25C tax credit that allows homeowners to deduct up to 30% of the cost of certain home improvements, up to $3,200 per year. Take a look at the chart below to see which energy efficient appliances, upgrades, and devices qualify for tax credit.
The qualifying costs for these items include the equipment itself, installation, and labor costs. It’s important to note that these tax credits are not up-front savings. They are factored into your tax credit amount when it’s time to file.
As you might imagine, there are certain requirements for new appliance installations and/or upgrades to you home that must be met in order to qualify for the tax credit. Our team over at Precision Air can help you select tax credit eligible qualified energy equipment that will not only help you save with tax credits but help save on overall annual utility bills. You can see the full details of the Energy Efficient Home Improvement Tax Credit and equipment eligibility here.
All homeowners are eligible for the Energy Efficient Home Improvement Tax Credit! The tax credits can be applied to any new qualifying equipment you have installed or upgrades you make after January 1, 2023. Keep in mind that there is an annual cap of $1200 per household per year (not including heat pumps, which cap at $2000), and a total cap of $3200. If you have improvements you would like to make to take advantage of these savings, now is the time!
Contact the professionals at Precision Air or call (725) 238-2188 for expert help and guidance on products and installation.
After you have completed your installation of your qualified energy property with Precision Air, we will provide you with documentation on your new qualified energy efficient upgrades to claim your tax credits.
To find out just how much money you can save on your taxes through these credits, use this handy IRA savings estimation calculator.
Tax credits aren’t the only incentive provided by the IRA to help homeowners do their part to cut both carbon pollution and inflation. Certain rebates will be available for upgraded appliances that make these changes even easier on your wallet.
For low- to moderate-income households that want to install new, efficient electric appliances, the High Efficiency Electric Home Rebate Act offers as much as $14,000 per year in rebates on such appliances and covers up to 100% of electrification projects. Take a look at the chart below to see what kinds of rebates will be available.
Most of the rebates for these appliances will be applied when you purchase the appliance, and will be available sometime in the second half of 2023, depending on your state. If you qualify for these rebates, be sure to contact Precision Air for advice in purchasing and installing any of these new appliances.
The Home Owner Managing Energy Savings (HOMES) rebate program offers money back on whole-home energy upgrades that reduce your overall home energy use. It covers efficient appliances like heat pumps or the installation of better insulation or other weatherizing efforts.
The HOMES program offers households up $4000-$8000 if they cut energy usage by at least 35% The more energy you save, the bigger the rebate!
All households qualify for the HOMES rebate. However, low- to moderate-income homeowners qualify for double the rebate, as well as up to 80 percent of project costs.
Most of the available rebates offered by the Inflation Reduction Act will be available starting near the end of 2023. The timing of these depends on your state of residence and on Department of Energy guidance, so be sure to check with Precision Air by reaching out online or calling (725) 238-2188 to see if rebates are available when you’re ready to purchase.
The Inflation Reduction Act was created to help Americans curb the expenses created by over-use of fossil fuels, reduce pollution, and create cleaner energy resources for all. Americans in every part of the country can reduce their energy bills, save on taxes, and get cash back by investing in and installing clean, efficient appliances and electrical upgrades. We know that it’s a lot to take in. If you have questions about how these types of appliances and upgrades work, we at Precision Air are happy to answer any questions. Fill out our contact form or call (725) 238-2188 in to learn more information on how to take advantage of the $369 billion Inflation Reduction Act.
*Disclaimer: Precision Air does not guarantee the availability of tax credits or rebate funds, nor the specific rebate or credit amounts that may be available to each individual. Rebates and tax credits are subject to change and may vary depending on factors such as geographic location, income level, and the specific details of the heating and cooling system being installed. While we make every effort to provide accurate and up-to-date information about available rebates and tax credits, it is ultimately the responsibility of the homeowner to research and verify eligibility for any available incentives. In addition, please note that the information provided by Precision Air regarding tax credits is for general informational purposes only and should not be considered tax advice. Homeowners should consult with a qualified tax advisor to determine their eligibility for tax credits and to receive specific advice on their individual tax situation. Precision Air is not responsible for any errors or omissions in the information provided, and we make no guarantees or warranties regarding the availability or applicability of any tax credits or rebates.