Tag: credits

Take Advantage of Tax Credits for Energy-Efficient Home Improvements

Get Tax Credits for Eligible Home Improvements and Reduce Your Energy Costs!

Because of the Inflation Reduction Act of 2022, homeowners can now receive tax credits when they make energy-efficient home improvements installed between January 1, 2023, and December 31, 2032. This is a great way to help reduce energy costs, get more money back on taxes, and add value to a home. Here are some tips on how homeowners can take advantage of this legislation:

Research Eligible Energy-Efficient Upgrades

heat pumpThere are many home improvements that can increase a home's energy efficiency and are eligible for federal tax credits. Before making any major purchases, research what upgrades will qualify to maximize savings and consult a professional who can help guide the decision-making process and ensure the improvements are done correctly so they can be eligible.

Not only will professionals be able to advise on what products or materials would work best for a home, but they may also be able to help identify additional energy-efficient upgrades eligible for tax credits and install them correctly. Some of the notable home improvements that are eligible for the tax credits include:

  • ENERGY STAR-certified ducted air source heat pumps are eligible for homeowners to claim 30% of the project cost up to $2,000
  • ENERGY STAR-certified ductless mini split heat pumps with a SEER2 rating of 16 or higher are eligible for homeowners to claim 30% of the project cost up to $2,000
  • ENERGY STAR-certified central AC systems with a SEER2 rating of 16 or higher are eligible for homeowners to claim 30% of the project cost up to $600
  • ENERGY STAR-certified gas furnaces with an AFUE rating of 97% or higher are eligible for homeowners to claim 30% of the project cost up to $600
  • ENERGY STAR-certified water heaters with 0.81 UEF or higher (for tanks less than 55 gallons) and 0.86 UEF or higher (for tanks holding 55 gallons or more) are eligible for homeowners to claim 30% of the project cost up to $600
  • ENERGY STAR-certified tankless water heaters with 0.95 UEF or higher are eligible for homeowners to claim 30% of the project cost up to $600
  • Electrical panel upgrades or replacement with a load capacity of 200 amps or more and is done alongside or enables the installation of qualified energy-effect improvements are eligible for homeowners to claim 30% of the project cost up to $600

Apply for Your Tax Credit

tax creditsFor tax purposes, it’s important to keep all of the necessary paperwork and receipts handy so everything can be properly documented. This includes any invoices or contracts related to the eligible home improvement as well as the total cost of the work.

Finally, when homeowners are ready to file their taxes, take advantage of the energy-efficient home improvement tax credit by completing the correct form and submitting it to the IRS. This form will allow homeowners to claim credits for eligible upgrades.

With the Inflation Reduction Act of 2022, homeowners have a great opportunity to save money on energy bills and increase their home’s value by making energy-efficient upgrades that qualify for tax credits. So don't miss out - start researching eligible energy-efficient upgrades and reach out today!

About Elite Electric, Plumbing & Air

Elite Electric, Plumbing & Air has over 30 years of experience serving Port St. Lucie and the surrounding areas. They offer upfront pricing, on-time arrival, and personal attention. Call them today to take advantage of tax credits on energy-efficient home improvements in Port St. Lucie, FL.

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How Homeowners Can Get Tax Credits and Rebates on a New HVAC System

What to Know About This New Piece of Legislation and How it Promotes Energy-Efficient Upgrades

The U.S. Bureau of Labor Statistics reports that the U.S. is seeing a historic increase in the price of everyday goods, from household appliances to groceries. This has made it difficult for many homeowners to make ends meet. The government has passed the Inflation Reduction Act to help make things more affordable (and reduce the country’s carbon footprint). 

This legislation makes it easier for homeowners to purchase and install eco-friendly heaters, air conditioners, and heat pumps by offering tax credits and rebates. In this blog, homeowners can learn more about the Inflation Reduction Act and what it could mean for their next HVAC upgrade. For more information about what this act entails, including its other benefits, one can read it here. 

The Inflation Reduction Act Makes Getting a New HVAC System Affordable 

inflationThe Inflation Reduction Act is an important tool that helps Americans stay ahead of rising energy costs while improving the environment. It is designed to help homeowners save money by reducing the cost of energy-efficient air conditioners, heaters, and heat pumps. Under the act, those who purchase qualifying new energy-efficient appliances receive tax credits and rebates. 

The amount varies depending on the type of appliance being purchased and the energy efficiency rating. In addition to providing cost savings, these appliances also help reduce energy usage in the home, providing savings on utility bills and environmental benefits as well. Qualifying households can save hundreds of dollars per appliance purchased and help support a transition to a cleaner energy economy.

What Are the Requirements for the Inflation Reduction Act’s Benefits? 

The Inflation Reduction Act provides tax credits and rebates for energy-efficient HVAC systems and heat pumps that meet the efficiency requirements. For instance, forced-air furnaces must have an AFUE (Annual Fuel Utilization Efficiency) rating of at least 90% to qualify for tax credits and rebates. Similarly, air conditioners and heat pumps must have a SEER (Seasonal Energy Efficiency Ratio) rating of at least 16 to qualify for the benefits.  Additionally, boilers must have an AFUE rating of at least 95%, and geothermal heat pumps must have an EER (Energy Efficiency Ratio) rating of at least 14.5 to qualify for the tax credits and rebates. 

It is important to note that these requirements are subject to change, so homeowners must consult with their local HVAC installer or other relevant authorities to determine the exact specifications for their particular system or pump.  Furthermore, these credits and rebates are only available for installations starting in 2023 and beyond.  With the proper information and understanding of the requirements, homeowners can take advantage of the tax credits and rebates provided by the Inflation Reduction Act. 

The Benefits of Getting a New HVAC System save

There are countless benefits to getting a new heater, air conditioner, or heat pump and replacing an older one, including: 

  • Longer lifespan 
  • Better efficiency
  • Saving money on utility bills 
  • Fewer problems 
  • Better performance 

By taking advantage of the rebates and tax credits offered in the Inflation Reduction Act, homeowners will not only save money through tax credits and rebates, but because the system is required to be energy efficient, they will also save money on their energy bills. 

About Elite Electric, Plumbing & Air 

Elite Electric, Plumbing & Air has over 30 years of expertise serving Port St. Lucie, FL, and the surrounding areas. They provide upfront pricing, on-time arrival, and 24/7 emergency service. Call them today for a heater, air conditioning, or heat pump installation in Port St. Lucie, FL.

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