2024 HVAC Tax Incentives: Application Guide

2024 HVAC Tax Incentives: Application Guide

To avoid rising energy costs and work towards a more sustainable life, many homeowners are trying new methods to maintain comfort levels while using less energy. Included in the Inflation Reduction Act, federal tax credits are available for high-efficiency HVAC equipment. These credits offer significant savings, as long as homeowners select eligible equipment and submit the appropriate form.

If you’re worried about a long and complicated process, we can share something that will help! Custom Air Systems Inc. hopes this guide gives you what you need to secure the 2024 HVAC tax credits. Here’s what you’ll need to do.

How Do These Tax Credits Work?

These valuable tax credits for energy efficient home improvements are just one portion of the recent Inflation Reduction Act. Energy costs affect everyone, so helping homeowners upgrade to higher efficiency utilities can benefit everyone. The main purpose of these credits is to help pay for high efficiency HVAC equipment and other projects. The two we will cover are the Home Improvement Energy Efficiency Credit and the Residential Clean Energy Credit.

But keep in mind, to earn any of the credits, you’ll have to fill out IRS Form 5695. Additionally, this form must be submitted during the same tax year that the updates were installed, not purchased.

Maximize savings with the Energy Efficiency Home Improvement Credit

Through 2032, the Home Improvement Energy Efficiency credit empowers homeowners by compensating up to $3,200 annually for energy efficient home improvements. This is equal to 30% of the total cost of the project. You should be aware that in order to be eligible for the maximum amount, you will have to make several investments. For example, you’ll get up to $2,000 for a new high-efficiency heat pump. This can be combined with the remaining $1,200 in credits for other eligible improvements made in the tax year.

While new heat pump systems are a popular choice for the tax credit, high efficiency furnaces, air conditioners, boilers, and other HVAC systems are still eligible for this tax credit. It helps confirm the make and model’s energy efficiency rating is high enough for eligibility.

Exploring the Residential Clean Energy Credit

The Residential Clean Energy Credit offers 30% savings on a variety of residential clean energy efficiency projects. Eligibility only applies to homeowners looking for new clean energy solutions for their home. While the Home Improvement Credit emphasizes utilities and HVAC systems, this credit is instead designed around renewable energy sources such as solar and wind power.

Some key details of this tax credit include that the installation project will be completed between 2022 and 2032. But at the same time, homeowners can use any extra credit to reduce taxes in future years. This is a great way to spread the costs and keep them more manageable.

Additional Qualifications for Energy Tax Credits

Because HVAC systems are one of the main reasons for high energy bills, these tax credits offer more access to the most energy efficient options. But the energy efficiency of the home can be improved in many other ways. In addition to the HVAC upgrades listed previously, {you can also choose|other eligible items include|you also have access to:

  • Energy saving heat pump water heating systems
  • Modern improvement of electrical panels
  • New electrical wiring
  • Insulation, air sealing and ventilation improvements
  • Energy efficient cooking appliances such as stoves, cooktops, and ovens
  • Efficient solutions for drying heat pump clothes
  • Water boilers

As with HVAC systems, you’ll need to check that your preferred make and model has the eligible energy efficiency ratings.

Maximizing Your 2024 HVAC Tax Credits: Top 3 Tips

While all of the upgrades listed can improve your home’s energy performance, a little planning will ensure the best chance for more long-term benefits. Maximize your HVAC tax credits with these reminders:

  1. Perform a power audit to identify valuable improvements. Trust experienced HVAC companies to identify essential products and services.
  2. Improve the thermal efficiency of your home with better windows and doors.
  3. Explore potential rebates from utility companies for clean energy upgrades. Renewable sources such as solar, wind, and geothermal contribute to the sustainability of the community’s energy grid.
  4. Don’t forget financing options from local service companies, which can help cut costs even further.

Custom Air Systems Inc. Helps You Secure HVAC Credits for 2024

Partner with local HVAC professionals like Custom Air Systems Inc for eligible services like energy assessments or new installation. Our experienced installers can deliver everything you need for a more energy efficient home.

Custom Air Products

Leave a Reply

Your email address will not be published. Required fields are marked *

Back To Top