Have you been considering air conditioning or heating system upgrades in Charlottesville? Then you should know about the rebates and tax credits offered by the Inflation Reduction Act (IRA).
Put into legislation in 2022, the goal of the IRA is to increase the access and affordability of more energy-efficient home systems. It also helps with home improvements that can reduce energy loss and use.
Read on to learn more about this incredible initiative and how you may be able to use it to benefit you this year.
What is the Inflation Reduction Act?
As explained by the US Environmental Protection Agency, the Inflation Reduction Act legislation offers “funding, programs, and incentives to accelerate the transition to a clean energy economy.” This act provides up to $369 billion in funds that will help provide tax credits and rebates for energy-efficient home upgrades and home system upgrades. Homeowners may receive up to $14,000 in rebates and credits for qualifying energy efficient upgrades, specifically for purchasing and installing highly efficient systems like a heat pump.
When did it go into effect?
While the IRA was signed into legislation last year, it has been in effect since Jan 1, 2023. While not all rebates and credits are available right now, the official rollout has begun. You can always talk to one of our team members to get the specifics on what rebates/credits are available to you now.
HOMES and HEERHA
The IRA provides two programs that will offer benefits to homeowners in the form of point-of-sale rebates or tax credits.
The first is the High-Efficiency Electric Home Rebate Act (HEEHRA). The HEEHRA (formerly the Zero-Emissions Home Act) is the rebate program that will help with home electrification projects with rebate sums varying based on household income. This is extremely helpful for low- and middle-income households as it can cover the cost of the appliance, installation, and labor.
The Whole Home Energy Reduction Rebate Program (HOMES) provides incentives for energy savings for homeowners. When homeowners retrofit their homes to achieve better energy efficiency they can qualify for incentives of up to $2,000 or more.
How can you use the IRA to help your home?
The benefits of the IRA come in the forms of tax credits and rebates. Rebates are offered at the point of sale, meaning you can qualify to get a reduced price on a new system or enjoy money coming back shortly after your purchase.
Tax credits will reduce the potential amount that you may owe on your taxes at the end of the year. For example, getting a $250 tax credit will reduce the amount owed by $250.
The key thing to remember is that your chosen service or system must qualify for one of these benefits. You can learn more about qualifying systems and upgrades here or by talking to your technician. Reach out to us today to learn more or schedule your next upgrade.
We can’t control the weather outside of your home, but we can control the weather inside your home. Contact Mack Morris Heating & Air Conditioning to schedule your HVAC system today and enjoy the current tax credits and rebates.