The Inflation Reduction Act (IRA) Has Tax Credits and Rebates for You
If you’ve been thinking about upgrading your home’s HVAC system, water heater, and electrical box, now is the time! The Inflation Reduction Act includes huge savings that are available on your new equipment and installation costs.
TAX CREDITS AVAILABLE January 1, 2023
How Much Can I Save with Tax Credits?
| 25C Tax Credit (Covers 30% of Cost) For Qualified Electrification Upgrades | |
| Total Annual Credit | $3,200 |
| Heat Pump | $2,000 |
| Other Upgrades | $1,200 |
| Annual Credit For Heat Pumps and Heat Pump Water Heater | $2,000 |
| Heat Pump | $2,000 |
| Annual Credit for Other Upgrades | $1,200 |
| Air Conditioner | $600 |
| Furnace | $600 |
| Electrical Panel | $600 |
| Windows | $600 |
| Doors | $500 |
| Insulation | $1,200 |
| Energy Audit | $150 |
The Inflation Reduction Act includes over $369 billion in the form of tax credits and rebates to benefit homeowners who make energy-efficient upgrades. This new legislation allows homeowners to save more than $14,000 in consumer rebates and tax incentives for families who purchase energy-efficient home appliances. In addition, these energy-efficient upgrades can save Brunswick-area, homeowners, over $600 annually on their energy bills. Tax credits are available now, while rebates will be coming later this year or early 2024.
Contact Hendrix Air or call 912-324-5893 today to learn how to save money this year through rebates and tax incentives.
25C Energy Efficient Home Improvement Tax Credit
The Inflation Reduction Act has built-in credits for households making energy-efficient upgrades. The Energy Efficient Home Improvement Tax Credit—an expansion of the existing 25C tax credit—allows homeowners to deduct up to 30% of the total cost of certain home improvements, up to $3200 each year. NOTE: Home upgrades must meet applicable Consortium For Energy Efficiency and Energy Star requirements to be eligible for the 25C tax credit.
The Brunswick home service professionals at Hendrix Air can provide you with expert help and guidance when you are ready for your energy-efficient upgrades. Contact us online or call 912-324-5893 to schedule your free home energy analysis today.
Yes, everyone is eligible for the 25C tax credit. There are no income qualifications; anyone with adequate tax liability to offset can qualify.
Yes, 25C upgrades must meet the Consortium for Energy Efficiency’s highest non-advanced tier and Energy Star requirements. The professionals at Hendrix Air can help you select the right upgrades to qualify for the 25C tax credit.
Hendrix Air will provide you with all the proper documentation to easily claim your home upgrade tax credits when you file your taxes. NOTE: We are not tax professionals and cannot offer filing or other financial advice.
Let Hendrix Air help you get the most out of your tax credits. Contact us today or call 912-324-5893 for assistance.
Rebates Coming Soon
High-Efficiency Electric Home Rebate (HEEHRA)
The High-Efficiency Electric Home Rebate program was designed to provide point-of-sale immediate discounts to low- and middle-income homeowners allowing them to save up to $14,000 on energy-efficient upgrades. The program covers 100% of electrification costs for low-income households and 50% of costs for moderate-income households; this includes the cost of the equipment and labor for professional installation. Qualification for this rebate program requires households to fall below 150% of the area median income.
| HEEHRA Rebate Levels For Qualified Electrification Upgrades | |
| Income Eligibility and % Costs Covered | |
| Low Income: <80% Area Median Income (AMI) % costs covered (including installation) | 100% |
| Moderate-Income: <80% Area Median Income (AMI) % costs covered (including installation) | 50% |
| Overall Incentives | |
| Max Consumer Rebate | $14,000 |
| Max Contractor Rebate | $500 |
| Rebates for Qualified Electrification Projects | |
| Heat Pump HVAC | $8,000 |
| Heat Pump Water Heater | $1,750 |
| Electric Stove/Cooktop | $840 |
| Heat Pump Clothes Dryer | $840 |
| Breaker Box | $4,000 |
| Electric Wiring | $2,500 |
| Weatherization insulation, air sealing, ventilation | $1,600 |
Whole Home Energy Reduction Rebate Program (HOMES)
The Homeowners Managing Energy Savings (HOMES) rebate program was designed to encourage homeowners to save energy, and the amount of the rebate is based on how much energy your home improvement will save—anywhere from $2000 to $8000 if you cut your energy use by 20% to 35% or more. For low- to middle-income households, the rebate program offers $4000-$8000 or 80% of project costs. Families in higher-income households can receive rebates of $2000-$4000 or 50% of project costs. The more energy you save, the bigger the rebate. Everyone qualifies for the HOMES rebate program; however, low- and middle-income households can earn more cash back.
Are Rebates Available Now?
The HEEHRA and HOMES rebate programs will start sometime at the end of 2023 or the beginning of 2024 through your state Energy Offices. The timing of these depends on state regulations and Department of Energy guidance, so be sure to check with Hendrix Air to see if rebates are available when you’re ready to purchase.
Tax Credits and Rebates—what’s the difference?
A tax credit is money that will be given back to homeowners when they file their taxes. You can earn up to $3200 in tax credits with the IRA’s 25C tax credit every year.
Rebates are off-the-top discounts at the point of sale and will provide customers with upfront savings. Rebates will not be available until the end of 2023 or the beginning of 2024. Contact Hendrix Air to stay updated on the latest news on when rebates will be available in The Brunswick area.
How do I save on my home upgrades today?
Take advantage of the 25C Energy Efficient Home Improvement tax credit and ask our professionals at Hendrix Air how you can maximize savings with qualified energy-efficient upgrades. The Hendrix Air team is ready to help you every step of the way.
Fill out our contact form or call 912-324-5893 to learn more information on how to take advantage of the $369 billion Inflation Reduction Act.
