The 2023 Inflation Reduction Act (IRA) provides significant investment to reduce the effects of US carbon pollution in the face of the current climate crisis. The IRA includes tax credits and rebates for Brunswick homeowners who upgrade their homes to make them more energy efficient.
IRA tax credits and rebates: how much can I save?
Homeowners in the Brunswick area who invest in energy efficient HVAC upgrades have the opportunity to save a whopping $17,000 in tax credits and rebates through the IRA. Use this handy savings calculator on Rewiring America’s website to estimate how much money you might save on your utility bills.
Inflation Reduction Act tax credits
Brunswick homeowners who purchase and install energy-saving upgrades to their homes, such as energy-efficient doors and windows, air conditioners, furnaces, heat pumps, and more, will be eligible for tax credits under the Inflation Reduction Act.
Tax credit for energy-efficient home improvements (25C)
As part of the funds allocated by the IRA, the Energy Efficient Home Improvement Tax Credit which allows homeowners to deduct up to 30% of the cost of certain energy-efficient home improvements, up to $3,200 per. Check out the list below to see what appliances and upgrades are eligible for this tax credit, which is an extension of the existing 25C credit. The AC professionals at Hendrix Air are standing by when you decide to invest in energy-efficient home upgrades or replacements.
Important: These are not up-front discounts on the purchase of new equipment or appliances. The tax credit will be factored into your tax amount when you file your 2023 taxes next year. The IRA does include rebates—more information on those is below.
NOTE: While we at Hendrix Air are happy to provide information on qualifying appliances, but we cannot provide any tax or other financial advice. Please contact your tax professional if you need help filing when the time comes.
Any new appliances or home upgrades you make must meet certain requirements in order to qualify for the 25C tax credit.
Eligibility for the IRA 25C tax credit
All Brunswick-area homeowners are eligible for the Energy Efficient Home Improvement Tax Credit, which applies to any qualifying equipment you install or upgrades you make in 2023 and beyond. The credit resets each year, and annual caps are $1200 per household per year, or $2000 for upgrades that include heat pumps. The total cap per household per year is $3200. Should you need assistance with products or installation, please feel free to reach out to Hendrix Air at 912-324-5893.
Claiming your Inflation Reduction Act tax credits
Hendrix Air can provide you with the documentation you will need regarding your new qualified energy efficient upgrades so you can claim your tax credits. Give us a call at 912-324-5893 to learn more.
Rebates for home improvement
Homeowners in Brunswick, FL can also benefit from rebates that are included in the IRA. These will be available toward the end of 2023. Two rebate programs are available.
HEEHRA (High Efficiency Electric Home Rebate Act)
The High Efficiency Electric Home Rebate Act (HEEHRA) provides rebates of up to $14,000 per year for low- to moderate-income households that upgrade to energy-efficient electric appliances. Eligible households must make an income below the 150% area median income.
Home Owners Managing Energy Savings (HOMES) Rebate
The HOMES rebate program reimburses homeowners for making whole-house energy improvements. That means you will be able to earn more money back if you install equipment like heat pumps and make electrical upgrades that reduce your home’s energy consumption.
With the HOMES program, the more energy you save, the bigger the rebate. Households that reduce energy use by 20%-35% can save $2000 to $8000!
HOMES rebates are available to all households, but the rebate amount is doubled for low- and moderate-income households. In addition, up to 80% of project costs will be covered by the program.
Most of the rebates offered under the Inflation Reduction Act will be available by the end of 2023, depending on state guidelines and Department of Energy regulations. To see if rebates are available when you’re ready to purchase, contact Hendrix Air at 912-324-5893.
Save energy, save money
The Inflation Reduction Act was crafted to help control the costs associated with the overuse of fossil fuels, as well as to reduce pollution and promote cleaner energy solutions throughout the United States. Homeowners can ease their energy spending, reduce their tax liability, and receive a financial return when purchasing energy-efficient appliances and other home upgrades.
At Hendrix Air we are happy to answer all your questions regarding potential home improvements or the Inflation Reduction Act; just give us a call at 912-324-5893.
(NOTE: We are not tax professionals and can’t offer financial advice. Please contact your tax preparation professional or the IRS website for help in filing your taxes and claiming any credits.)