Taking Advantage of Federal Tax Credits and Local City Utility Rebates

Under the Inflation Reduction Act of 2022, federal income tax credits for energy efficiency home improvements will be available through 2032.

In 2022, the federal government passed the Inflation Reduction Act. This act provides federal income tax credits for energy-efficiency home improvements through 2032. As a homeowner, you can take advantage of these tax credits and save money in the process. ENERGY STAR-certified products are eligible for this tax credit. Combined with your local City Utility rebates you can cash in on the savings. So let's break down how you can use them to upgrade your home and save money.

What Is ENERGY STAR?

ENERGY STAR is an independent certification program that verifies that products meet strict energy-efficiency guidelines set by the U.S. Environmental Protection Agency (EPA). Products with an ENERGY STAR label have been independently tested and certified to be energy efficient—saving you money on your energy bill each month. When you choose ENERGY STAR products for your home, you are making an investment in both your pocketbook and in a cleaner future.

What Home Improvements Are Eligible for the Tax Credit?

The Inflation Reduction Act covers most of the six elements of an ENERGY STAR Home Upgrade, including insulation, air sealing, windows and doors, heating/cooling systems, water heaters, and lighting upgrades. Homeowners can also choose to reduce fossil fuel usage of their HVAC system by upgrading to a hybrid heat system that combines a furnace and a heat pump (such systems could qualify for more than $2,000 in tax credits) or to eliminate fossil fuel usage by going with an all-electric heat pump and air handler system. Note that there may be other restrictions depending on what state or municipality you live in; at SS&B Heating & Cooling we’re standing by to help walk you through the process.

If you install eligible HVAC equipment between January 1, 2023, and December 31, 2032, you may qualify for the Energy Efficient Home Improvement Tax Credit (25C). This credit covers 30% of installation costs with specific limits:

• Up to $2,000 for qualified heat pumps
• Up to $600 for qualified air conditioners
• Up to $600 for qualified furnaces
• Up to $600 for electrical upgrades needed for heat pump installation

The maximum annual tax credit is $3,200 when including a qualifying heat pump.

Please note that system combinations must meet specific criteria to qualify for the Energy Efficient Home Improvement Tax Credit (25C). Contact us for more details.

Disclaimer:

The Energy Efficient Home Improvement Tax Credit (25C) is available for qualified energy-efficient improvements made to your home from January 1, 2023, through December 31, 2032. The credit covers:

• 30% of eligible expenses, up to $1,200 per year for most improvements
• A separate $2,000 limit for qualified heat pumps, biomass stoves, and biomass boilers

The maximum annual credit is $3,200. This tax credit is nonrefundable, meaning it can reduce your tax liability to zero but will not result in a refund.

To qualify, improvements must be made to your main home in the United States and meet specific energy efficiency criteria. Additional local rebates and incentives may apply, subject to availability and eligibility requirements.

Consult with SS&B Heating & Cooling or a tax professional for detailed eligibility criteria and application procedures.

How Can I Take Advantage of This Tax Credit?

If you’re interested in taking advantage of this tax credit, you can click here see which ENERGY STAR products are eligible for a tax credit. Once you’ve chosen a product or two that you’re interested in just give us a call for a complete estimate and walk-through. We’ll walk you through the process of purchasing and installing your brand-new HVAC products and what you need to do for your tax credit. Then you get to enjoy a more efficient and comfortable home while you save!

How Can I Take Advantage of Local City Utilities Rebates?

If you want to save, you can click here to type in your zip code and see the rebates offered by your local City Utilities. If you live in Springfield for example you could receive a rebate for up to $975.00 for qualifying equipment depending on the product you have installed. Again, take a look at the available products for rebates and if there’s one you’re interested in, give us a call.

*Please note that system combinations must meet specific criteria to qualify for the rebates. Contact us for more details.

Making improvements to increase energy efficiency at home doesn't have to be costly—there are many options available today that can help make it more affordable while still allowing homeowners to benefit from the long-term savings associated with using ENERGY STAR-certified products. By taking advantage of both the federal income tax credits available through 2032 as well as any applicable local rebates or incentives available now, homeowners can make their homes more efficient while saving money at the same time!

SS&B Heating & Cooling: Your Guide to Navigating Home Energy Tax Credits with Ease

Navigating the specifics of this tax credit program can be complex, with various caps and limits based on the type of equipment installed. This complexity can be particularly challenging when dealing with different types of heating and cooling systems. This is where SS&B Heating & Cooling steps in. As a Certified Energy Star Contractor, we have the expertise to recommend and install Energy Star-rated products that not only meet the program’s requirements but also enhance your home's energy efficiency. Our team of experts is here to help you make the most of these tax credits, guiding you through the process and ensuring you benefit fully from the available incentives. With our assistance, you can confidently make energy-efficient upgrades to your home, knowing that you're maximizing both your comfort and your tax credit potential.

If you need an upgrade to one part of your HVAC system or the entire thing, now is the perfect time!

Ready to upgrade? Call us now for energy-efficient solutions! 417-580-9905, Prefer typing to talking? Fill out our easy online form today!