The 2023 Tax Credit on New Furnaces, ACs & Heat Pumps
2023 Tax Credit for Homeowners
Starting in 2023, homeowners can get a tax credit for upgrading their home’s heating and cooling systems with qualified purchases. St. Louis area residents can take advantage of this opportunity to improve their home as well as reduce energy costs. In this article, Indoor Comfort Team shows you the basics of how you can save money to make your home better.
Last summer, the federal government enacted new laws to limit inflation as well as address issues with climate control and health care. homeowners pay for the home comfort systems they need. A variety of economic help was created in a large bill called the Inflation Reduction Act (or IRA). Included in this is the renewed Energy Efficient Home Improvement Tax Credit (25C) which gives homeowners a great incentive to purchase units that are energy efficient.
The Inflation Reduction Act helps homeowners pay for a variety of things to improve their home including windows, doors, water heaters, furnaces and home cooling systems.
Save as much as $3,200 on Heating & Cooling!
The savings for homeowners looking to take advantage of all the credits. One of the biggest tax rebates is in improving the comfort of your home while also helping overall climate problems.
You can get up to 30% off the installation costs for several new systems. In total, if you took advantage of all the credits available, you could save $1,200. That’s why NOW is the perfect time to save money on upgrading your home with a new heating and cooling system.
Here in the St. Louis area, Indoor Comfort Team is providing installations of these qualified systems. Contact us today to get a free quote on a new furnace or air conditioner for your home. Call our office to learn more or to get a free estimate scheduled at (314) 230-9542.
Qualifying Heating & Cooling Units
Are you looking to replace your existing furnace or AC? Qualified air conditioners or furnaces get you up to $600 each.
However, in this bill’s efforts to improve climate issues, homeowners can be rewarded greatly for getting a hybrid heat system installed. These systems incorporate more efficient all-electric appliances.
For qualified heat pump systems, homeowners can claim as much as $2000.
Note that this applies only to qualifying ACs, furnaces, and heat pumps. You will want to consult with a professional HVAC company to ensure you are getting a system that qualifies you for receiving these tax credits. Contact Indoor Comfort Team to understand what qualifying system will work for your home.
Beyond making sure you get the right equipment to qualify, you also need this installation to be made to an existing home. This tax credit is only for systems that are for homes that are being improved or added on to. This is not for new construction.
In most cases, this must be for a home you live in. Landlords cannot claim this credit for one of their properties that they rent out.
Note: Specific information regarding the qualified systems and how to claim Home Improvement Tax Credits for 2023 and beyond is forthcoming pending the release of application instruction from the IRS.
Rebates vs Tax Credits
We know that just about anything that involves the IRS or any part of the federal government can be confusing. And this can include understanding exactly HOW you will receive this savings.
A rebate is an amount of money that is given to a consumer at or after a purchase. Specific rebates can often vary by location. And you typically need to work with a participating contractor to qualify for getting that money back.
A tax credit is an amount of money that you can subtract from your taxes. For example, if you owed the IRS $1000 in taxes but had a $600 tax credit for installation of a new air conditioner, you would only have to pay the government $400.
Note: The information provided here is given as only general information to help provide understanding for how this tax credit may be applied. For specific tax information and assistance, consult the IRS or a certified accountant.
Extra Cost Savings over Past Years
If you had a new qualifying upgrade to your home’s heating and cooling system in 2022, you could still take advantage of the credits that were available through the end of 2022. The tax credits in the Inflation Reduction Act of 2022 gave homeowners 10% off up to a $500 savings.
But the 2023 Inflation Reduction Act has been both extended AND expanded! Now new installations of energy-efficient systems can save you 30% off!
What if you are not ready to upgrade in 2023? No worries! Not only was the expiring 2022 Inflation Reduction Act extended with this bigger and better bill, but it will also continue for 10 years! That means that any of the qualifying installations you make in your home up through December 31, 2032 will be covered.
However, the United States government can always change things. As of this writing, the information provided here is correct. But you will want to refer to a certified tax professional or the IRS for any questions on your tax return or this tax credit program.
St Louis & Missouri Tax Credit Saving!
Call Indoor Comfort Team today to get started on taking advantage of this cost savings for upgrading your furnace and air conditioner. We will be sure to find a qualifying system that is right for your home.
Indoor Comfort Team is the locally owned company homeowners have relied on up across the St. Louis area. Our company has been trusted to provide quality furnace installations and air conditioning installation since 1979. We are also the St. Louis area’s qualified installers of heat pumps.
Give us a call today at (314) 230-9542 or send us a message online to schedule a free estimate.
