Almost every year there are some type of energy, or energy efficiency, tax credits to take advantage of. But with the Inflation Reduction Act, homeowners and business owners have an opportunity to save more than ever.
In order to motivate people to use energy efficient equipment and renewable energy, homeowners are incentivized to take advantage of the new Energy Efficient Home Improvement Credit.
It can help offset the money spent by business and homeowners on energy efficient equipment installation.
There are a handful of ways that business owners and homeowners can save some money by taking advantage of Residential Energy Efficiency Tax Credits:
Upgrade to Energy-Efficient Appliances: By upgrading to energy-efficient appliances, such as HVAC systems, water heaters, and refrigerators, businesses and homeowners can reduce their energy consumption and qualify for tax credits. For example, installing an ENERGY STAR certified HVAC system can qualify for a tax credit of up to $300.- Install Energy-Efficient Windows and Doors: Replacing old windows and doors with energy-efficient options can also help businesses and homeowners save money on their energy bills and qualify for tax credits. For example, installing ENERGY STAR certified windows can qualify for a tax credit of up to $200.
- Add Insulation: Adding insulation to walls, attics, and other areas can help businesses and homeowners reduce energy waste and qualify for tax credits. For example, adding insulation to the attic can qualify for a tax credit of up to $500.
- Install Solar Panels: Installing solar panels can help businesses and homeowners generate their own electricity and reduce their dependence on the grid. Solar panel installations can qualify for a tax credit of up to 22% of the total cost of the system.
- Perform an Energy Audit: An energy audit can help businesses and homeowners identify areas where energy waste can be reduced, and qualify for tax credits for energy-efficient upgrades. Energy audits can also help identify areas where businesses and homeowners can take advantage of rebates and other incentives.
Let’s go a little more in depth on the HVAC systems and Home Energy Audits that can qualify for tax credits under the new law. After all, HVAC and home energy audits are our areas of expertise!
Tax Credits for HVAC Systems
To qualify for the HVAC system tax credit, the system must meet certain energy efficiency standards, which are outlined by the U.S. Department of Energy. Generally, the system must be ENERGY STAR certified and have a Seasonal Energy Efficiency Ratio (SEER) of at least 16 and an Energy Efficiency Ratio (EER) of at least 13. Additionally, the tax credit is equal to 10% of the cost of the equipment, up to a maximum of $500. This credit can be applied to upgrades such as air conditioners, furnaces, boilers, and heat pumps.
Home Energy Audits in Westchester & Putnam Counties
The Residential Energy Efficiency Tax Credit also provides a credit for home energy audits. The credit is equal to 10% of the cost of the audit, up to a maximum of $500. The audit must be performed by a qualified energy auditor, and it must meet certain requirements, such as using a standardized assessment tool, providing recommendations for energy efficiency improvements, and including an estimate of the energy savings that can be achieved.
Taken as a whole, these tax credits can be a fantastic way for homeowners to save money on the cost of installing energy-efficient HVAC systems and hiring a professional home energy audit company. Contact your HVAC & Home Energy Audit professionals to learn more about your options, and to take advantage of the cost savings now available.
