The Inflation Reduction Act (IRA) provides a wide range of options for getting part of the cost of upgrading to a more Energy Efficient HVAC system back, which can be a strong incentive for convincing homeowners to make greener, more efficient choices. Here are some of the most important things to know about the Inflation Reduction Act and how Energy Stars Heating & Cooling Co. can help you make budget friendly, energy efficient upgrades to your home.
What Is the Inflation Reduction Act?
Many homeowners are intrigued by the potential benefits of switching to an energy-efficient HVAC system but are hesitant to commit to expensive major changes. The Inflation Reduction Act (IRA) aims to encourage homeowners to consider replacing appliances in their homes that are inefficient and outdated by offering financial incentives for installing energy-efficient heating and cooling systems, water heaters, windows, insulation and doors by the end of 2032. The act passed in 2022, and includes options for earning various tax credits and rebates. This in turn can help offset the cost of installing a new High Efficiency HVAC system along with encouraging homeowners who might be on the fence, to go ahead and make that investment in their home.
What Tax Credits and Rebates Are Available?
The Inflation Reduction Act offers several types of tax credits and rebates that can make the cost of installing a new HVAC system more attainable. By indirectly reducing installation costs, these incentives work to encourage a higher percentage of homeowners to consider the benefits of a High efficient HVAC system and decrease the overall impact these have on the energy grid in this country. You may have several incentive options to choose from depending on the type of upgrade you are interested in, including:
- Up to $2,000 in IRA tax credits for installing a qualified heat pump
- Up to 30 percent of the cost of a complete HVAC system in tax credits
- Rebates of up to $8,000 through the HOMES program
- Tax credits for home energy audits that can provide further suggestions for making your
home more energy efficient - Retroactive tax credits of up to $500 for certain upgrades made prior to December 31,
2022
The Benefits of the Inflation Reduction Act
While the primary goal of the Inflation Reduction Act is increasing the number of homeowners who choose HVAC systems that are better for the planet, there are also several ways in which this option can benefit you personally. Here are some of the most common benefits of the Inflation Reduction Act!
Higher Air Quality
Many newer heating and cooling systems are capable of keeping the air in your home fresher and cleaner than older systems that may no longer be functioning as efficiently as they once did.
Tax Savings
The Inflation Reduction Act offers several significant tax credit options that can have a major impact on the total amount you pay in taxes during the year you make your upgrade. Although you will generally need to pay for your upgrade up front, making sure that your tax credit is properly documented when you file your taxes will often result in a significantly higher tax return than you typically receive.
Greener Planet
Eco-friendly HVAC systems and other green initiatives have the highest impact on the planet when as many people as possible use them, and increasing the overall use of these alternatives can help reduce carbon emissions.
Lower Utility Bills
Many High Efficient HVAC systems are naturally more energy efficient than older alternatives, which means that you may also continue to save money over time by reducing your heating, cooling, and other energy bills.
Experience Unparalleled HVAC Savings With Energy Stars Heating & Cooling Co.
At Energy Stars Heating & Cooling Co, we prioritize helping Illinois and Missouri residents find innovative solutions for incorporating energy-efficient HVAC systems into their homes. Whether you are looking to swap your entire current system for a new one that will give you the maximum incentives available or simply upgrade a part or two that have not been working as they should, we can help! Evaluate your options and make decisions that both align with the Inflation Reduction Act standards and provide the best possible benefits for your home with our help and guidance.
Contact us or call us at 618-477-8337 today to learn more about the benefits of taking advantage of the Inflation Reduction Act or to start the process of planning your High Efficiency HVAC system upgrades!