Are The Tax Credits For A New HVAC System Worth It?
REEIS SPECIAL: REEIS is currently offering up to $1,200 instant discount on a tax credit qualified heating and air conditioning through 2022.
EnergyStar reports that as much as half of the energy used in your home goes to heating and cooling. So, making informed and smart decisions about your home’s heating, ventilating, and air conditioning (HVAC) system can have a significant effect on your utility bills — and your comfort.
On August 16, 2022, The White House announced the new Inflation Reduction Act. As part of the Act, there are residential Energy Conservation Standards for Room Air Conditioners. The Department of Energy (DOE) estimates the Act will save consumers up to $275 over the life of their HVAC product.
The new Department of Energy HVAC Standards will increase the cost of a new heating and cooling system by 15% to 20% in 2023. Should you replace your heating and air conditioning system and take advantage of the 2022 tax credits? Todd Russo with REEis Air Conditioning, a Rosie on the House Certified Partner, thinks so. Here’s why:
- New 2022 tax credits – The new Inflation Reduction Act put 2022 tax credits in place for heating & air condition systems and energy efficiency improvements.
- 2023 Department of Energy equipment standards mandate price increases and makes it illegal to sell certain 2022 equipment in 2023.
- Manufacturers’ fall rebates have just been announced.
- There will also be utility rebates.
- Some HVAC companies, such as REEIS will help facilitate a tax credit match and cash discounts.
Russo notes that if your taxable income is over $132,000 per year, or you have more than one system to replace, now is the ideal time to schedule an appointment with your HVAC contractor. You can take advantage of 2022 and 2023 incentives, but you need to act soon. Supply chain issues are still present, and some equipment has longer lead times. The equipment requires installation in 2022 to take advantage of the 2022 credit. 2023 tax credits are also available, but they will be realized on your 2023 return.
Nearly every brand-name HVAC manufacturer, such as Trane and Lennox, which REEis installs, offers models that qualify for the tax credit. The number of qualifying models will vary by brand, though.
To learn more about DOE’s work on building efficiency and appliance standards, visit the Appliance and Equipment Standards Program.
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REEis Air Conditioning takes a whole-house approach to HVAC, and that means taking every single component into account to help maximize efficiency, comfort, and longevity. They will analyze and improve every part of your home’s climate control system. Serving the Metro Phoenix area, they carry several contractor licenses, certifications, and affiliations. Their NATE-certified service technicians adhere to strict standards and take part in continual training to stay abreast of the latest industry developments. They specialize in HVAC, insulation techniques, airflow, solar heat gain, pressure balancing, and more.