With renewed tax credits and rebates under the Inflation Reduction Act, you can receive money back just for installing a new energy-efficient system! This billion-dollar climate and health care bill aims to reduce emissions, invest in climate protection, and offer eligible homeowners money-saving incentives for "greener" home appliances and systems. If you're looking to upgrade your HVAC system, now's the time to get started.
Tax Credits (25C)
Through 2032, federal income tax credits are available to homeowners that will allow up to $3,200 annually to lower the cost of energy-efficient home upgrades by up to 30 percent. There is a lifetime cap of $600 per measure, with an annual total limit of $1,200 annual total limit (exceptions listed below).
- Claim 30% up to $1,200 for these qualifying energy property costs and certain energy-efficient home improvements: central air conditioners, furnaces, boilers, hydronic boilers, water heaters, and insulation.
- Claim 30% up to $2,000 for these qualifying energy-efficient home improvements: air-source heat pumps and heat pump water heaters. These improvement can be combined with credits up to $1,200 for other qualified upgrades made in one tax year.
