Upgrade Your HVAC System and Save: 2023 Government Benefits Explained

Thinking about upgrading your home’s cooling and heating system? Well, now is a really good time! Thanks to the government, you might get some money back when you buy a new HVAC unit. Let’s break it down and see how this can help you and your home.

Remember that Inflation Reduction Act from 2022?

It’s not just about money – it’s also about helping our environment. One cool thing it does is offer tax credits. It’s like getting a special discount on your taxes when you buy a new, energy-efficient HVAC system. These credits are part of the act’s plan to fight climate change.

If you’re getting a new high-efficiency electric heat pump, or certain air conditioners and gas furnaces, there’s a credit waiting for you. This credit can be used to reduce what you owe in taxes next year, which can save you some cash. Let’s dive into the details.

Getting Credit for Energy Efficiency

The Inflation Reduction Act brings back and updates a program called the Energy Efficient Home Improvement Tax Credit. Basically, if you buy stuff that makes your home use less energy, you could earn a special tax credit. This credit can be as much as $3,200 every year. This rule started in 2023 and goes until 2032, so if you upgrade your HVAC system during this time, you might get this benefit.

If you install energy-efficient air conditioners or furnaces or do things like adding better insulation or replacing windows and doors, you could earn up to $1,200 in tax credit each year. But there’s a limit: you can’t get more than 30% of the total cost of your new HVAC system or other upgrades. For really efficient furnaces and air conditioners, the most you can get is $600 or 30%.

If you go for an electric heat pump, biomass boiler, or heat pump water heater, there’s a different credit. You might get up to 30% off the cost of buying and installing the new system, which could be as much as $2,000.

Important to note, not all new units will qualify. Only those with the ENERGY STAR label can get this credit. There’s one exception: packaged air conditioners – they all qualify.

For gas furnaces to qualify, they need to be super efficient with an AFUE above 97%. For a split air conditioner, it should have a SEER of 17 or higher. And a heat pump needs to be at least 18 SEER and have an HSPF of at least 10.

Remember, these numbers might change in the future. The rule says units only qualify if they’re as efficient as the best ones listed by the Consortium for Energy Efficiency at the start of each year. These efficiency standards get better each year, so it might be smarter to upgrade sooner rather than later.

Tax Credits from 2022

Did you get a new HVAC system in 2022? You might still get a tax credit for that, though it won’t be as big as the 2023 one. Depending on the unit you got, you could get either $300 or $500 in tax credit for heat pumps, air conditioners, furnaces, and water heaters.

Getting Money Back through Rebates

Here’s where things get interesting: the High-Efficiency Electric Home Rebate Program. The government set aside $4.4 billion for this program, which offers rebates to people who get energy-efficient stuff for their homes. If you go for a new electric heat pump, you might get as much as $8,000 back. There are also rebates for things like heat pump clothes dryers and induction stoves – up to $840, and heat pump water heaters – up to $1,750.

This rebate program works differently from tax credits. The government gives money to each state, and then each state has its own program to give out the money to those who qualify. Once the money’s used up, the program stops.

Though approved in 2022, these rebates might not start until the next year. Each state has to set up its program and get it approved by the government before they can start giving out the rebates. The government set a deadline of August 2024 to speed things up. If a state doesn’t start giving rebates by then, they lose their money.

This rebate program is only for folks who don’t earn too much money. If your family earns up to 150% of the average income in your area, you might qualify. If you make 80% or less of that average, you could get the full rebate. If you make between 80% and 150%, you might get half of the rebate.

What’s great about this program is you get the money right when you buy the new stuff. No need to wait like with the tax credits. And, all new heat pump units qualify – no need to worry about energy efficiency requirements.

If you’re looking to upgrade your HVAC system, Marthedal Solar, Air & Heating is here to help. We’re pros in installing air conditioners, heat pumps, furnaces, and other cooling and heating equipment. We can also take care of any HVAC repairs and maintenance, or plumbing services you need. If you’re in Fresno, reach out to us for more info or to schedule service.

Marthedal Solar, Air & Heating: Your HVAC Partner in Fresno, CA

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We take pride in our commitment to exceptional service, quality workmanship, and customer satisfaction. Our goal is to ensure that every customer receives the highest level of professionalism and personalized attention. From the moment you reach out to us, our friendly and knowledgeable team will guide you through the process, answering any questions you may have and addressing your concerns.

If you’re experiencing stinky feet odors in your AC system or require maintenance services to prevent such issues, don’t hesitate to contact Marthedal Solar, Air & Heating. We offer comprehensive HVAC solutions tailored to meet your specific needs. Let us be your HVAC partner in Fresno, CA, and experience the difference our expertise and exceptional service can make. Schedule an appointment with us today and enjoy a fresh and comfortable indoor environment throughout the year.

If your AC system is emitting a stinky feet odor, addressing it promptly is crucial for a comfortable living environment in Fresno, CA. By understanding the causes, following troubleshooting tips, and prioritizing regular maintenance, you can keep your AC system odor-free and enjoy clean, fresh air indoors. Contact Marthedal Solar, Air & Heating, your trusted HVAC partner in Fresno, to schedule professional maintenance and ensure a pleasant cooling experience year-round. Together, we’ll create a healthier and more comfortable home for you and your family.