How the Inflation Reduction Act (IRA) Tax Credits Saves Money on Energy-Efficient Upgrades

How the Inflation Reduction Act (IRA) Tax Credits Saves Money on Energy-Efficient Upgrades

If you’re a homeowner in Wilmington, NC looking to save money on your energy bills, the Inflation Reduction Act (IRA) has provisions aimed at making home energy upgrades more efficient and affordable. Crucial services like HVAC repairs and heat pump installations are easier to obtain with the credits, rebates, and incentives mentioned below.

How the Inflation Reduction Act (IRA) Tax Credits Saves Money on Energy-Efficient Upgrades

Saving Money on Electrical, Plumbing, and HVAC Services with IRA Credits

The Inflation Reduction Act came into effect on January 1, 2023, offering tax credits and rebates to homeowners who choose to upgrade their homes to make them more energy-efficient. The savings are available to everyone, and savings for those in low- and middle-income brackets are even greater.

If your home is over 25 years old, still has its original wiring, or its heating and plumbing systems aren’t operating efficiently, it’s probably time for equipment upgrades. With the IRA, these upgrades can be enjoyed by more people while fighting climate change with new, energy-efficient equipment.

How the IRA Works

The IRA offers a range of incentives to homeowners who upgrade to more energy-efficient HVAC, electrical, and plumbing systems. Here’s how you can save:

The HOMES Rebate

The Home Owner Managing Energy Savings (HOMES) program offers rebates ranging from $2,000 to $8,000, or up to 80% of a project, for people in low- and middle-income brackets. Those in high-income brackets can save $2,000 to $4,000, or up to 50%. Eligibility opens for these rebates if your upgrades cause you to cut energy usage by at least 20% to 35%.

The HEEHRA Rebate

There are also special point-of-sale rebates available under a different provision called the High-Efficiency Electric Home Rebate (HEEHRA). Discounts up to $14,000 are available, as well as 100% of the costs of upgraded electrical systems for low-income homes and 50% for middle-income homes. To qualify for the biggest rebates, your annual income must be 150% below the median for your area.

Tax Credits

With the Energy Efficient Home Improvement Tax Credit, you can get up to 30% of the total cost of certain qualifying expenses as a tax credit. This means you can deduct up to 30% of energy-efficient upgrade costs from your federal income tax the next time you file, up to an annual limit of $3,200. Qualifying upgrades must adhere to the Consortium For Energy Efficiency and Energy Star requirements.

Contact Wilmington Air today at 910-941-0399 to learn more details regarding the IRA and our expert HVAC, plumbing, and electrical services. Our team is ready to assist you in upgrading your home’s systems to save your health, your money, and the environment with energy-efficient equipment.