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HVAC Tax Credits for Energy Efficiency

HVAC Tax Credits for Energy Efficiency

Getting your home comfortable should be as easy as setting the thermostat to your desired temperature and r

When it comes to energy conservation and saving money, Americans now have more opportunities to save money upfront and, in the long run, by receiving HVAC tax credits when making their homes and businesses more energy efficient. In addition, while reducing energy costs and demand for energy, Americans can utilize the Inflation Reduction Act of 2022, which provides federal tax credits and deductions for qualifying energy-efficient home improvements.

At AccuTemp, we believe in continued education and that knowledge is power, which is why we stay abreast of changes in HVAC technology as well as how that affects home and business owners when installing new HVAC equipment. Not only do we encourage energy efficiency, but we also encourage homeowners, builders, and business owners to research energy-efficiency tax credits and their potential benefits.

Savings for Homeowners

Through the year 2032, there are federal income tax credits that provide as much as $3,200 per year in energy-saving tax credits to help lower the cost of home upgrades that improve energy efficiency. The types of improvements or installations that may be covered include, but are not limited to:

  • Electric or natural gas heat pumps
  • Electric or natural gas heat pump water heaters
  • Natural gas or propane or oil water heaters
  • Natural gas or propane or oil hot water boilers
  • Biomass stoves or biomass boilers
  • Central air conditioners
  • Windows and skylights
  • Exterior doors
  • Insulation
  • Panelboards, sub-panelboards, branch circuits, feeders
  • Home energy audits

These installations and upgrades must meet certain requirements to receive eligible energy efficiency tax credits. However, they will help families save money each month on their energy bills for many years into the future, and the HVAC tax credits are a bonus incentive that can help offset initial costs.

Savings for Home Builders

Section 45L Tax Credit for Energy Efficient New Homes was also extended and updated by the Inflation Reduction Act of 2022. If a home or unit was acquired on or after January 1, 2023, the tax credit’s base level for home builders falls under the portion of the act specifically tied to ENERGY STAR certification in regards to single-family, multifamily, or manufactured homes. A bonus credit is also available when the home is certified to the Department of Energy’s Zero Energy program. In addition, the associated tax credit was extended through 2032.

Savings for Commercial Building Owners

Commercial building owners can also benefit from the Inflation Reduction Act of 2022, as it expands the energy-efficient commercial buildings deduction that was previously made permanent in 2021 under Section 179D. If a building increases its energy efficiency by 25 percent or more, it can claim this deduction. In addition, there are bonuses associated with higher energy efficiency improvements. These deductions can add up quickly and provide significant savings for commercial building owners. By investing in energy-efficient upgrades, building owners can not only save money on their energy bills but also reduce their carbon footprint and contribute to a more sustainable future.

Upgrade Your HVAC System and Save: Take Advantage of Energy Efficiency Tax Credits

While it is essential to discuss the tax implications of any financial choices with your tax advisor or accountant, we believe that helping you understand potential HVAC tax credits available can help you make informed decisions. AccuTemp has provided home and business owners with reliable residential and commercial HVAC solutions since 1981. We keep up with the latest technology as well as available rebates and HVAC tax credits in Phoenix, AZ. Our HVAC knowledge can help you choose the best unit to keep your home or business comfortable all year round while also maximizing your investment through utility, manufacturer, and tax rebates. When you are ready to discuss which rebates may apply to you, contact us today.

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