HVAC systems are a major financial investment, which can be a deterrent for many to upgrade their equipment.
The Inflation Reduction Act (“IRA”), signed into law in August of 2022, created several incentives for home energy efficiency upgrades, including HVAC systems, to help homeowners make the investment. While there continues to be much confusion for consumers about the availability of the incentives, we have provided a brief summary with the latest information below.
The IRA provides two types of incentives, one in the form of tax credits and a second in the form of rebates.
Tax Credits: Credits are available to qualifying taxpayers for eligible purchases beginning in 2023. Learn more about what equipment is eligible for tax credits, and check out this infographic to see how much you might be able to save. ARS continues to monitor for updates and will update this site accordingly.
Rebates: The IRA created rebate programs that will allow qualifying homeowners to receive point-of-sale rebates for eligible purchases. The funding for the rebate programs is provided by the federal government through the Department of Energy; however, the rebates will be administered by individual states. The Department of Energy is working to provide program guidelines for distribution to the states. Each state must then submit applications to the Department of Energy with their proposed plan for implementing the rebates and obtain approval before funding is released to them. The deadline for states to submit plans is in August 2024, and accordingly, it is believed that most states will not have the rebate programs in place until 2024.
ARS can help you understand incentives that may be available to you so that you can minimize the cost of new heat pumps, ventilation, and other HVAC upgrades in order to achieve more comfortable and energy-efficient living.
To learn more about money-saving tax credits and rebates, please refer below:
ARS is not a licensed tax professional and cannot provide tax advice. We recommend consulting with your tax advisor on eligibility for any tax credits.
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