Tax season can be a great opportunity to save money, thanks to various available tax credits — including a new one that benefits the environment and those who need to make specific electrical, HVAC, or plumbing repairs and upgrades. The Inflation Reduction Act Tax Credit promotes reduced carbon usage, allowing residents of Gastonia, NC, and the surrounding area to save on energy-efficient repairs and appliance installations. If you’re a homeowner looking to upgrade your home while also helping the planet, this credit is a great option to consider.
At Dilling, we can help you find the best HVAC system for your home that also qualifies for the highest tax credits and rebates. Upgrading your HVAC system not only helps you save on energy bills but also on taxes when you file next year.
Under the Inflation Reduction Act, the 25C Energy Efficiency Home Improvement Tax Credit has been expanded and extended. For 2023, all homeowners can receive a tax credit that covers 30% of the cost of new energy-efficient systems, with an even higher credit available for low- and moderate-income households. By making these improvements, you’ll also reduce energy output and decrease your carbon footprint. Keep in mind that the credit is capped at a maximum of $3,200 per year. With this tax credit, you can make the upgrades you need to improve your home’s energy efficiency while also saving money.
To qualify, it’s important that any upgrades you make to your home adhere to the requirements of the Consortium for Energy Efficiency and Energy Star. These organizations provide standards and guidelines for energy-efficient products and practices.
In addition to tax credits, you may also be eligible for rebates for energy-efficient appliances. Low- to middle-income households can receive rebates of up to $8,000 if they reduce their energy usage by 35% or more.
If you’re a homeowner looking to make energy-efficient upgrades, the Home Owner Managing Energy Savings (HOMES) program offers rebates that can range from $2,000 to $8,000 — or up to 80% of the project cost! High-income households may also be eligible for rebates of $2,000 to $4,000, or up to 50% of the cost.
To qualify for the HOMES rebates, you’ll need to demonstrate that your upgrades have resulted in a reduction in energy usage by at least 20% to 35%. These rebates provide a great opportunity to make energy-efficient improvements to your home and save money in the process.
Another rebate program to consider is the High-Efficiency Electric Home Rebate (HEEHRA), which offers point-of-sale discounts of up to $14,000. Under this program, low-income homes can cover 100% of the cost of upgraded electrical systems, while middle-income homes are eligible for 50% of the cost.
To qualify for the highest HEEHRA rebates, your annual income must be 150% below the median for your area. This program provides an excellent opportunity for homeowners to make significant upgrades to their electrical systems and save money on their energy bills.
Wondering which types of home projects qualify for reimbursement under the IRA? You’ll be happy to know that a variety of electrical, HVAC, and plumbing upgrades are eligible for credits!
The act provides credits for upgrading to more efficient heat pumps, heat pump water heaters, air conditioners, water heaters, furnaces, boilers, and electrical panels. Additionally, an energy audit is covered under the program.
It can also cover the full cost of the work, including equipment, installation fees, and labor expenses. By taking advantage of these tax credits, you can make important upgrades to your home while enjoying significant savings.
Our HVAC experts can guide you through the process of selecting the right system and qualifying for tax credits and rebates. By taking advantage of these incentives, you can make your home more energy-efficient, save money, and contribute to a more sustainable future.
Contact us today to learn more about how you can take advantage of the Inflation Reduction Act and make your home the envy of the neighborhood in Gastonia, NC!