Georgia HVAC Companies Announce New Tax Incentives for Upgrades

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HVAC companies across the country are thrilled to tell clients about new tax incentives for homeowners and businesses who complete HVAC upgrades.

On August 12th the Inflation Reduction Act (IRA) was passed in the House of Representatives. August 16th, President Biden signed this act into law. Part of this act is energy efficient income tax credits for upgrades made to HVAC systems, part of clean air initiatives with a $370 billion allotment.

Whether your home or business runs off solar energy or traditional; the IRA benefits everyone and all types of HVAC systems.

Discloser: The team at AComfort may be HVAC experts, but are not tax experts. Please speak with a tax expert for more details about the incentives outlined below to find out what you can apply for. Some rebates cannot be combined with other federal rebates, credits, or grants.

Energy Efficient Tax Credits

While HVAC companies like AComfort try to put this complex bill in Layman’s terms for you, feel free to read the IRA in its entirety.

Homeowner Tax Credit (25C Tax Credit)

  • Known as the Non-business Energy Property Tax Credit
  • Only can be used for residential energy efficiency improvements (houses, condos, etc.)
  • Solely offered to homeowners who install eligible HVAC equipment or energy-saving “building envelope components” that meet specific energy-efficiency standards
  • Backdated for use in 2022 and good until 2032
  • 2022 offers a 10% credit, then increases to 30% in 2023 of total installation costs through 2032
  • Deducted from homeowner’s tax liability
  • Annual $1200 limit and up to $600 for qualified HVAC equipment

Qualifiable Services and Home Improvements

  • Up to $150 credit for a qualified home energy audit
  • Up to $2000 credit for geothermal heat pumps, heat pump water heaters, biomass-fueled stoves, or boilers installed
  • Insulation and air sealing
  • Electrical panels
  • Roofs excluded
  • Energy-efficient windows, doors, and HVAC systems (including central AC, boilers, and furnaces)

Federal Solar Tax Credit (Investment Tax Credit)

  • Only for residential and commercial solar PV (photovoltaics) installation
  • Retroactive starting in 2022 until 2032 for 30% of total installation cost
  • Will be eliminated for residential installation in 2035
  • Stand-alone battery storage qualifies for credit (starting 2023)

Home and Multifamily Credit (45L Tax Credit)

  • Offers home builders and commercial building owners an enhanced tax credit for new energy-efficient installation or equipment projects
  • Backdated starting in 2022 for up to a $2000 credit
  • Credit increases to $5000 in 2023 until 2032 for single-family, multifamily, and manufactured homes

Learn about other ways the Inflation Reduction Act can save you money. You can also type in your zip code to learn more about state incentives for renewables and efficiency.

Georgia HVAC Companies: AComfort is Leading the Way

There’s nothing better than doing your part to help the environment and saving money at the same time. AComfort is leading the way in dependable Georgia HVAC companies with expert service and repairs, unmatched customer service, and quality new unit installation.

Contact AComfort today to schedule a service for your residential or commercial HVAC system. Remember it’s not too late to schedule your fall preventative maintenance to protect the life of your HVAC system.