The 2023 Inflation Reduction Act: Good News for Homeowners

At Snowbird Heating & Cooling, we’re always looking for ways to help our customers save money and keep their homes comfortable all year round. That’s why we’re excited to tell you about the 2023 Inflation Reduction Act (IRA) and how it can benefit you as a homeowner.

What Is The IRA All About?

The IRA is a law designed to tackle some of the United State’s most significant challenges, like climate control and healthcare. It includes tax credits and other incentives to encourage businesses to be more eco-friendly and help individual Americans save money through energy-efficient home upgrades.

How Can The IRA Help You?

One of the main goals of the IRA is to address climate change and slow down global warming. The good news is homeowners like you can take advantage of heat pump rebates, AC rebates, and tax credits for making energy-efficient upgrades in your home, such as new windows, doors, water heaters, furnaces, and heating and cooling systems.

Here’s what you need to know:

  • Start by doing a home energy audit to see what upgrades make the most sense for your home and have the best return on investment.
  • Each upgrade has its own tax credit, with different limits on how much you can get back on your taxes. For example, insulation has a cap of $1,200, while heat pump rebates can go up to $2,000.
  • There is no need to upgrade everything at once. Most of these incentives will be available for the next ten years, so you can do them one at a time and make the most of your investment.
  • If you upgrade your heating and cooling system, you may be eligible for the Energy-Efficient Home Improvement Credit. This credit covers new doors, windows, insulation, skylights, and heat pumps that regulate your home’s temperature more efficiently. It may also cover the cost of a home energy audit, water heaters, and electrical upgrades.
  • Install clean energy systems, such as solar panels, small-scale wind, geothermal heat pumps, home battery storage, or fuel cell energy systems. Doing this may make you eligible for the Residential Clean Energy Credit. Each system has eligibility criteria and credit limits. If there is excess credit, it can then be carried forward to the next year.

Why Make Energy-Efficient Upgrades?

Switching to energy-efficient upgrades and renewable energy sources can protect you against energy price spikes and hedge against inflation. The prices of fossil fuels, like oil and natural gas, are subject to international events and global demand, which can cause prices to go up unpredictably. On the other hand, renewable energy sources and energy-efficient upgrades have a high upfront cost, but they can save you money in the long run with lower energy bills and fuel costs.

For example, switching to a heat pump could save you between $500 and $1,000 per year on average in heating and cooling costs! And the best part is, if you make energy-efficient upgrades in 2023, you can claim the related tax credits when you file your 2023 tax return in 2024.

Let Us Lend A Helping Hand

We hope this information helps you take advantage of the 2023 Inflation Reduction Act and make the most of the heat pump rebates, AC rebates, and tax credits available. If you have any questions or need assistance, Snowbird Heating & Cooling is here to help. Just give us a call at (863) 551-3411!