How the Inflation Reduction Act Benefits Homeowners

The U.S. Federal Government recently passed the Inflation Reduction Act, a sweeping measure to create a more sustainable, cleaner future. The Act aims to improve the affordability of energy-efficient appliances and home repairs and save you money on utility bills.

What is the Inflation Reduction Act?

The Inflation Reduction Act is a comprehensive piece of legislation passed by the U.S. Federal Government to promote a more sustainable and environmentally-friendly future. One of the Act’s main provisions is to make energy-efficient appliances and home repairs more affordable for consumers. 

The Act aims to reduce energy consumption and greenhouse gas emissions by encouraging these products and services. In addition to helping the environment, the Act also aims to save consumers money on their utility bills by reducing the energy they need in their homes. 

The Act benefits homeowners by including tax credits and rebates for energy-efficient products and services and regulations to encourage the use of clean energy sources.

How Can the Inflation Reduction Act Benefit You?

Suppose homeowners install specific high-efficiency heating, ventilation, and air conditioning (HVAC) equipment. In that case, homeowners may take advantage of tax credits under the 25C, 25D, or 45L provisions of the tax code. 

These credits can help offset the cost of upgrading to more energy-efficient systems and can be claimed on homeowners’ tax returns. It’s important to note that these credits are only available for certain types of equipment and may have limitations on the amount that can be claimed.

In addition to these tax credits, local governments may offer rebate programs starting in 2023 to encourage homeowners to make energy-efficient home upgrades. Some examples of these programs include the High-Efficiency Electric Home Rebate Act and the Home Energy-Performance-Based Whole House (HOMES) Rebates.

These programs may provide financial incentives such as direct rebates or discounts on purchasing eligible products and services. These programs are designed to help homeowners save money on their energy bills and reduce their environmental impact by using more efficient systems and appliances.

What benefits are currently available?

Suppose you have recently purchased qualifying equipment such as ENERGY STAR-certified products like air conditioners, heat pumps, gas furnaces, and boilers. In that case, you may be eligible to receive tax credits and/or rebates. 

The entire program rolls out in 2023, but some tax credits are still available for equipment purchased in 2022.

What benefits are on the horizon for homeowners?

Claiming your benefits can be confusing. Your recently-purchased equipment may qualify for a rebate or tax credit. Gorjanc Home Services can help you understand how to claim your tax credits or get a rebate on a new system.

Call us at (440) 449-4411 or book an appointment online for a free in-home estimate on a new system — we’re here to help you make the most of these new programs!