The Inflation Reduction Act (IRA) offers significant tax credits and rebates that can help you make the upgrades to lower your carbon footprint and make your home more energy efficient. This is great news if you’ve been considering an HVAC upgrade or heat pump for your home. These IRA incentives will help Fort Myers homeowners:
- save money on monthly energy bills
- receive huge rebates and tax incentives
- have a cleaner, healthier indoor air environment
Homeowners in Fort Myers can reduce the energy they are using and save money in the long run by replacing old, outdated, and inefficient heating and cooling systems and equipment.
Savings on heat pump and HVAC upgrades
A heat pump offers significant savings over a furnace/air conditioner combination system. Heat pumps can save the average American homeowner around $10,000 over 15 years.
In the short term, you should familiarize yourself with the tax credits and rebates offered through the Inflation Reduction Act. Tax credits went into effect January 1, 2023 and rebates will be available for equipment and installation purchases later in the year. Here are the tax credits that you may qualify for:
Heat Pumps
Heat pumps are extremely energy efficient as they essentially replace two systems—a furnace and an air conditioning system. A heat pump system also offers some advantages over other types of heating and cooling systems.
- It saves you money and space, since it is one unit doing both jobs.
- Heat pumps require a yearly system check. This can be done by the homeowner, but we recommend having an HVAC professional from Best Home Services come out and do an inspection.
- Because no fossil fuels are used to run a heat pump, there are no fumes being released into the air. This is better for both the environment and your wallet.
Air Conditioner
If you don’t go with a heat pump, the latest air conditioners can save you significant money on your energy bill, in addition to reducing carbon pollution. Ask the HVAC pros at Best Home Services what they recommend for homeowners in Fort Myers. Give us a call at 239-420-7561.
Furnace
A heat pump isn’t always the right fit, depending on the structure of the home or the environment. An energy efficient furnace may make more sense. If you are in the market for a furnace upgrade, you can save up to $600 with the tax credits included in the Inflation Reduction Act. Give Best Home Services a call at 239-420-7561 to have a pro assess your HVAC system and make recommendations.
Tax credit and rebate details
Energy Efficiency Home Improvement 25C Tax Credit
The 25C tax credit, also called the Energy Efficiency Home Improvement Tax Credit, has been increased to cover 30% of the total cost of new energy efficient qualified systems for 2023.
As a homeowner in Fort Myers, installing a heat pump or upgrading your HVAC with Best Home Services in 2023 means you will be able to deduct 30% of your total costs when you file your taxes next year. The total tax credit cap is $3,200 in tax credits, and the max for a heat pump is $2,000.
Home Owner Managing Energy Savings (HOMES) Whole House Rebates (The HOMES Rebate Program)
The 25C program isn’t the only new incentive from the Inflation Reduction Act. Another program is the HOMES rebate. This is a whole-home, performance-based rebate, meaning that the more energy you save by making upgrades, the more money you get back.
All Fort Myers homeowners qualify for the HOMES Rebate, but low- and medium-income households can see higher returns. This program provides rebates based on the percentage of energy savings. This program is capped at $8,000 for low to middle income households earning less than 80% of area median income who cut energy use by 35%.
NOTE: The HOMES rebate cannot be combined with the HEEHRA Rebates, but can be combined with the Inflation Reduction Act tax credits.
Contact Best Home Services today to schedule an appointment and see how you can save money with a heat pump or other HVAC upgrade and have this rebate apply to you. Give us a call at 239-420-7561.
Important: Best Home Services cannot offer financial or tax advice. Please consult your tax professional for information regarding the tax credits and rebates offered by the IRA.
High-Efficiency Electric Home Rebate Act (HEEHRA)
The High-Efficiency Electric Home Rebate Act (HEEHRA) offers as much as $14,000 per year in discounts of purchases and installation for energy-efficient electrical projects. These discounts are capped at 50% of qualifying costs for a household that makes between 80% and 150% of area median income. If your household income falls below that threshold, HEEHRA covers 100% of qualifying costs up to $14,000.
While the IRA prohibits combining the HOMES rebate and the HEEHRA rebate, you are allowed to claim HEEHRA rebates and tax credits.
Like the HOMES rebate program, funds for the HEEHRA will become available later in 2023, depending on Department of Energy guidelines and state implementation. Low-income households will receive larger and more accessible up-front discounts from HEEHRA than the HOMES rebate.
Contact Best Home Services at 239-420-7561 and schedule an appointment to see how you can upgrade your house and save with the HEEHRA or HOMES rebates.
Get answers to all your heat pump, HVAC, and Inflation Reduction Act (IRA) questions at Best Home Services
The IRA rebates and incentives apply to heat pumps to heat and cool your house, HVAC upgrades, and many other energy efficient home upgrades. Let Best Home Services help you choose the right system for your home and work with you on what IRA tax rebates apply. Contact us today at 239-420-7561 to make an appointment or ask us questions you may have about how you can take advantage of the Inflation Reduction Act.
