Choose ARS/Rescue Rooter for Your HVAC Upgrade
Upgrading your HVAC system can provide you with years of comfort and reliability, but it is a big investment. Fortunately, there are several new tax credits and rebates that you may be able to use to minimize the cost.
The 2022 Inflation Reduction Act added or updated several HVAC incentives. And here’s the good news: If you qualify, you can save thousands of dollars.
As these savings become available in 2023, we want you to know that ARS is the simple provider you need when you have questions. We are the experts in our field, and we will make every attempt to help homeowners navigate these new tax laws and rebates. In other words, we’ll do the work for you when the time comes.
Energy Efficient Home Improvement Credit
The Energy Efficiency Home Improvement Credit gives a credit of up to 30% on the purchase of qualified energy-efficient equipment.
HVAC upgrades such as a new central air conditioner, fuel-powered water heaters, and heat pumps may be eligible for the credit.
Residential Clean Energy Credit
The Residential Clean Energy Credit provides a credit of up to 30% on the installation of alternative energy sources, like solar or geothermal.
If you’re planning to install solar panels, geothermal, or a battery system, you may be eligible to get the credit.
The HOMES Rebate offers a rebate based on the amount of energy the household cuts through improvements, including HVAC upgrades. For instance, homes that produce energy savings of 20-34% could receive a rebate of $2,000, while homes that produce energy savings of at least 35%, could receive $4,000. As for the value of the rebate, this depends on both the type of home (multi-family or single family) and the homeowner’s income level relative to the area’s median income.
Homeowners with low-to-moderate income can qualify for double the amounts above (up to $8,000) on installation of energy-saving appliances and systems.
To learn if you’re eligible, you’ll need to research your median area income. Rebate qualification is based on household incomes as presented by the Department of Housing and Urban Development (HUD). Homeowners can search their median area income on the HUD website.
High-Efficiency Electric Home Rebate
The High-Efficiency Electric Home Rebate Program is geared toward low-to-medium income families and provides rebates for qualifying households on the installation of efficient electric equipment such as heat pumps or electric stoves.
Qualifying households can save as much as $14,000 per year in point-of-sale discounts for electrification projects.
Again, you can determine your area’s median income on the HUD website< LINK TO: https://www.huduser.gov/portal/datasets/il.html>
Qualifying HVAC System Purchases
Qualifications for these rebates relate to the equipment and your household income. If you’re scheduling a new installation, ask your Comfort Advisor about requirements before your appointment. We can advise you on how to take advantage of any rebates or apply for tax credits.
The following HVAC system products qualify for rebates:
New heat pumps – save up to $8,000
Insulation, air duct sealing & ventilation – save up to $1,600
Reasons to Install a New HVAC Unit
If your HVAC system is older but working well, you might wonder why you need to replace it at all.
HVAC systems wear out over time. They are more likely to break down and lose output, as they get older.
A money-saving HVAC rebate isn’t the only benefit you could get by installing a new HVAC system. Here are a few more to consider.
If you’re worried your current HVAC system isn’t performing as it should, a new unit will almost certainly lead to an improvement.
With the use of variable-speed motors and other technological advances, you can get the ideal output from the equipment.
Improved Temperature Control
Keeping your home at the perfect temperature is the purpose of an HVAC system. Newer systems do a better job of it.
If you want to create a precise schedule to control the heat and humidity, the latest models make it much easier.
Older HVAC systems tend to make a lot of noise during operation even if they are in good condition. They make more noise when they’re not.
If quiet operation is important to you, newer models have the technology to minimize it, so you barely notice it running.
Every year you keep an old unit increases the risk that you will end up with a big repair bill.
By comparison, new systems are much less likely to need repairs. Occasional fixes are likely to cost less.
If nothing else, upgrading assures you that the system is unlikely to suddenly break down.
Better Energy Efficiency
Old units lose efficiency. New units tend to be more efficient by innovation.
If you want to decrease your energy consumption and your utility bills as a result, upgrading is a great choice.
ARS/Rescue Rooter Offers Expert HVAC System Care
When you want the best long-term investment, upgrading your HVAC system calls for the experts at ARS/Rescue Rooter.
We provide expert service on HVAC systems, including installation, maintenance, repair, and replacement. We can assist you in determining your needs and qualifications for the federal tax credit for HVAC.
Our technicians are vetted carefully by our hiring team to ensure that they have the right credentials to give great service.
As for the rebates, these will begin December 31, 2022, and run through September 30, 2031. You can rely on the ARS team to be your resource when you have questions regarding these savings. You can sign up for updates regarding the new tax laws on our site and we’ll keep you in the loop!
HVAC System Rebate FAQs
Can you claim a new HVAC system on your taxes?
Probably. Since the federal tax credits for energy efficiency were extended as part of the new Inflation Reduction Act, any qualifying home improvements you did to your primary home after December 31, 2021, may be claimable on your 2022 taxes. Keep in mind that while the tax credits for 2022 are available at lower amounts, the new tax credits for 2023 will offer homeowners hundreds of more dollars in savings than ever before (depending on the equipment efficiency).
What HVAC systems qualify for a tax credit?
HVAC systems that are deemed energy efficient including heat pumps, heat pump water heaters, natural gas furnaces and boilers, and central air conditioning should qualify.