Maximize Your Savings with the Federal Tax Credit for Energy-Efficient Upgrades
If you’re planning an energy-efficient home upgrade but don’t qualify for the HEEHRA rebate, you can still benefit from the Federal Tax Credit. This federal program, introduced under the Inflation Reduction Act of 2022, is designed to help families of all income types afford greener, more efficient home systems and appliances. With up to $3,200 available for qualifying HVAC products and services, this credit can make your home more comfortable, eco-friendly, and affordable.
How the Federal Tax Credit Works:
- Heat Pump or Dual Fuel Systems: Homeowners can receive a tax credit covering up to $2,000 or 30% of the project cost, whichever is less, when replacing their existing equipment with ENERGY STAR® certified heat pumps. These systems are highly efficient options for both heating and cooling, making this credit a great incentive for upgrading to an energy-smart solution. This applies to only one system per tax year.
- Conventional Cooling Systems: For traditional cooling systems, homeowners can qualify for a credit of up to $600 or 30% of the project cost, whichever is less, when replacing their existing equipment with ENERGY STAR® certified air conditioners. This applies to each system, with a maximum of two systems eligible per tax year.
- Insulation: Upgrading your home’s insulation can also qualify for a credit of up to $1,200 or 30% of the project cost, whichever is less. Proper insulation helps maintain consistent indoor temperatures, which can reduce energy bills and enhance home comfort.
Combine and Save Even More:
The Federal Tax Credit can be combined with rebate programs, including the TECH Clean Rebate and the Comfortably California Rebate, maximizing your total savings. By stacking these incentives, you can offset the cost of your energy-efficient upgrades even further, achieving greater comfort and efficiency for less.
If you’re interested in making a qualifying upgrade, reach out to us today to learn more about which systems and products can help you save the most with the Federal Tax Credit and other rebate programs!
