The Inflation Reduction Act (IRA) was created to provide significant investment to reduce the effects of US carbon pollution in the face of the current climate crisis. The act will benefit homeowners who make energy-efficient upgrades in the form of tax credits on new HVAC, electrical, and plumbing items, in addition to lowering energy bills.
How much can you save?
With IRA Tax Credits, you could potentially save upwards of $3200 per year when you make qualifying energy-efficient upgrades to your home in Mount Vernon! And that’s not even counting how much you can save on your utility bills. Here’s a great savings calculator from Rewiring America that will show you just how much you can save by making energy efficient changes to your home.
With tax season right around the corner, we’re all looking for ways to save money on our taxes, right? Good news! The IRA includes tax credits for people who make energy-saving changes and upgrades to their homes, like heat pumps, energy-efficient doors and windows, solar, heat pump water heaters, and more.
25C Energy Efficient Home Improvement Tax Credit
We all like saving money on taxes, and the IRA has built-in credits for households making energy efficient choices starting January 1,2023. The professionals at CPI Plumbing & Heating can give you all the information you need about your appliance options and installation procedures when you’re ready to update.
The Energy Efficient Home Improvement Tax Credit is an expansion of the 25C tax credit that allows homeowners to deduct up to 30% of the cost of certain home improvements, up to $3,200 per year. Take a look at the chart below to see which energy efficient appliances, upgrades, and devices qualify for tax credit.
The qualifying costs for these items include the equipment itself, installation, and labor costs. It’s important to note that these tax credits are not up-front savings. They are factored into your tax credit amount when it’s time to file.
As you might imagine, there are certain requirements for new appliance installations and/or upgrades to you home that must be met in order to qualify for the tax credit. Our team over at CPI Plumbing & Heating can help you select tax credit eligible qualified energy equipment that will not only help you save with tax credits but help save on overall annual utility bills. Check out this chart to see how much you can save!
You can see the full details of the Energy Efficient Home Improvement Tax Credit and equipment eligibility here.
Who is eligible for tax credits?
All homeowners are eligible for the Energy Efficient Home Improvement Tax Credit! The tax credits can be applied to any new qualifying equipment you have installed or upgrades you make after January 1, 2023. Keep in mind that there is an annual cap of $1200 per household per year (not including heat pumps, which cap at $2000), and a total cap of $3200. If you have improvements you would like to make to take advantage of these savings, now is the time! Contact the professionals at CPI Plumbing & Heating for expert help and guidance on products and installation.
Claiming your tax credits
To find out just how much money you can save on your taxes through these credits, use this handy IRA savings estimation calculator.
A Cleaner Future
The Inflation Reduction Act was created to help Americans curb the expenses created by over-use of fossil fuels, reduce pollution, and create cleaner energy resources for all. Americans in every part of the country can reduce their energy bills, save on taxes, and get cash back by investing in and installing clean, efficient appliances and electrical upgrades. We know that it’s a lot to take in. If you have questions about how these types of appliances and upgrades work, we at CPI Plumbing & Heating are happy to answer any questions.
Great, How do I get started?
Your trusted HVAC experts at CPI Plumbing & Heating will provide you with the information you need. Contact us today to make an appointment or ask any questions you may have about how you can take advantage of the Inflation Reduction Act.