THE INFLATION REDUCTION ACT, FEDERAL TAX CREDITS AND PENNSYLVANIA STATE INCENTIVES
As a top-rated HVAC service in Elizabethtown PA and the surrounding area, Home Climates works hard to provide the best products at competitive prices. Our goal is to make sure your home is as comfortable as it can be and save money at the same time. One of the ways we do this is by making sure our customers are aware of all the amazing federal and state incentives that are currently available. This is a great way to save up-front on equipment and in the long run on your energy bills. Save Now
Inflation Reduction Act
The Inflation Reduction Act is a government incentive projected to reduce greenhouse gas by 31% to 44%.1 The IRA will bring relief in the form of both discounts on purchasing new systems that meet the energy efficiency requirements and in energy bill relief.
Who Can Take Advantage of the IRA
Homeowners, builders and contractors, and commercial building owners and architects alike can benefit from this legislation. Please research to find out the specifics of how you can benefit. Homeowners may even claim these benefits annually through 2032.
What Savings Can I Get?
- Up to a $600 tax credit for high-efficiency air conditioners.
- Up to a $600 tax credit for high-efficiency gas furnaces.
- Up to a $2,000 tax credit for high-efficiency heat pumps.
- Up to 30% tax credit for geothermal heat pump systems.
How Are These Incentives Available?
In an effort to reduce greenhouse gas emissions, cut down unnecessary energy use, and to work towards an overall cleaner environment, the government is providing monetary incentives towards upgrading to more energy-efficient systems.
Have you heard of SEER? Your systems SEER stands for Seasonal Energy Efficiency Ratio, and indicates how much energy a system uses. Newer systems are made with a much higher seer rating, meaning lower yearly energy needed for operation.
Combining State and Federal Incentives
Generally, you can claim multiple tax credits to reduce your tax liability and maximize your tax benefits from energy-efficient investments. There are limits to combining certain rebates on the same project, such as the home electrification rebate and the home efficiency rebate.
What Are Tax Credits
This is money awarded towards purchasing applicable HVAC systems that meet energy efficiency standards. Tax credits directly reduce the amount of taxes you owe.
The amount of the tax credit varies depending on factors such as the type of equipment, its energy efficiency rating, and the total cost of the system. HVAC tax credits can be combined with other incentives, such as rebates and utility incentives, to maximize the financial benefits of adopting energy-efficient HVAC systems.
What Happens After I Qualify?
After choosing and installing an HVAC system that meets the energy efficiency requirements, homeowners can apply for rebates. Proof of purchase and installation will be required. Once approved, a credit check or rebate will be received.
How Can I Claim These Credits and Incentives?
Between the Inflation Reduction Act, and current Federal tax Credits and Pennsylvania State Incentives, it has never been a better time to purchase a new heating/cooling system. This is the smart way to heat/cool for homeowners and commercial building owners. Since these rebates vary by state, are limited-time, and are subject to change, it is important to get in contact with an HVAC professional at Home Cliamtes.
Call us today at 717-689-4151 or contact us online, and let us help you save big on your new system!
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