In an effort to help Americans reduce the effects of US carbon pollution, the 2023 Inflation Reduction Act (IRA) provides significant investment in the form of tax credits and rebates for Tampa homeowners who upgrade their homes to make them more energy efficient. Upgrades like these can also lower your energy bill, so it’s an investment worth looking into.
IRA tax credits and rebates: how much can I save?
Homeowners in the Tampa area who invest in energy efficient HVAC upgrades have the opportunity to save a whopping $17,000 in tax credits and rebates through the IRA. This savings calculator on Rewiring America’s website can help you estimate how much money you might save on your utility bills. Talk with the HVAC professionals at Integrity Home Solutions to see what energy-efficient home updates might be right for your home. Give us a call at 813-590-7898.
Inflation Reduction Act tax credits
Tampa homeowners who purchase and install energy-saving upgrades to their homes, such as energy-efficient doors and windows, air conditioners, furnaces, heat pumps, and more, will be eligible for tax credits under the Inflation Reduction Act.
25C tax credit for energy-efficient home improvements
The Energy Efficient Home Improvement Tax Credit included in the Inflation Reduction Act is an expansion of the 25C tax credit, which allows homeowners to deduct up to 30% of the cost of certain energy-efficient home improvements, up to $3,200 per year. Check out the list below to see what appliances and upgrades are eligible for this tax credit. The AC professionals at Integrity Home Solutions are standing by when you decide to invest in energy-efficient home upgrades or replacements.
Any new appliances or home upgrades you make must meet certain requirements in order to qualify for the 25C tax credit Integrity Home Solutions can help you find qualified equipment that will save you money and qualify for the tax credit—give us a call at 813-590-7898. Check out this chart to see how much you can save on your utility bills each year!
Find a list of Energy Efficient Home Improvement Tax Credit and eligible appliances here.
IMPORTANT NOTE: These tax credits will be added to your tax credit amount when you file next year; they are not up-front savings on the purchase of new equipment or appliances. And while Integrity Home Solutions is happy to provide information on qualifying appliances, we cannot provide any tax or other financial advice. Please contact your tax professional if you need help filing when the time comes.
Eligibility for the IRA 25C tax credit
If you are a Tampa, FL homeowner, you are eligible for the Energy Efficient Home Improvement Tax Credit. The credit resets each year, which means that it will apply to any qualifying equipment you install or upgrades you make in 2023 and beyond.
Annual caps
Annual caps for these tax credits are $1200 per household per year (without heat pumps), or $2000 for upgrade that include heat pumps, with a total annual cap of $3200. Now is a great time to undertake planned home improvements and take advantage of these tax savings! Need assistance with products or installation? Call Integrity Home Solutions at 813-590-7898.
Claiming your Inflation Reduction Act tax credits
Integrity Home Solutions can provide you with the necessary documentation regarding your new qualified energy efficient upgrades so you can claim your tax credits. Give us a call at 813-590-7898 to learn more. Remember: Integrity Home Solutions cannot offer tax or financial advice.
Use this IRA savings estimation calculator to find out how much you can save on taxes by taking advantage of these credits.
Inflation Reduction Act home improvement rebates
Homeowners in Tampa, FL can also benefit from rebates that are included in the IRA. While tax credits are available right now, rebates will be available toward the end of 2023.
HEEHRA (High Efficiency Electric Home Rebate Act)
The High Efficiency Electric Home Rebate Act (HEEHRA) provides rebates of up to $14,000 per year for low- to moderate-income households that upgrade to energy-efficient electric appliances. Eligible households must make an income below the 150% area median income. Check the chart below for all the info you need about the HEEHRA rebate program.
In most cases, you will receive a rebate when you purchase the appliance under the HEEHRA program. If you have questions about eligibility, want to see if you qualify for these rebates, or for advice on purchasing and installing any of these new appliances, contact Integrity Home Solutions at 813-590-7898.
Home Owners Managing Energy Savings (HOMES) Rebate
The other rebate program included in the IRA is the HOMES rebate, which encourages energy savings by reimbursing homeowners for whole-house energy improvements. That means you will be able to earn more money back by installing equipment like heat pumps or making electrical upgrades that reduce your energy consumption.
With the HOMES program, the more energy you save, the bigger the rebate. Households that reduce energy use by 20%-35% can save $2000 to $8000!
HOMES rebates are available to all households, but the rebate amount is doubled for low- and moderate-income households. In addition, up to 80% of project costs will be covered by the program.
Most of the rebates offered under the Inflation Reduction Act will be available by the end of 2023, depending on DOE regulations and state guidelines. To see if rebates are available when you’re ready to purchase, contact Integrity Home Solutions at 813-590-7898.
Toward a cleaner future
The Inflation Reduction Act was crafted to help control the costs associated with the overuse of fossil fuels, as well as to reduce pollution and promote cleaner energy solutions throughout the United States. Homeowners can ease their energy spending, reduce their tax liability, and receive a financial return when purchasing energy-efficient appliances and other home upgrades.
At Integrity Home Solutions we are happy to answer all your questions regarding potential home improvements or the Inflation Reduction Act; just give us a call at 813-590-7898.
(A REMINDER: We are not tax professionals and can’t offer financial advice. Please contact your tax preparation professional or the IRS website for help in filing your taxes and claiming any credits.)
Frequently Asked Questions
What are the differences between tax credits and rebates under the Inflation Reduction Act?
If you upgrade your home, you can claim the tax credits included in your IRA on your tax return, which reduces your tax liability. With the 25C tax credit, customers can receive an annual tax incentive of up to $3200 with the IRA. The tax credit can be claimed for both this year and next year if you install a heat pump air conditioning system or a heat pump water heater in your home.
A rebate is a type of upfront savings that is applied at the point of sale. The service provider is responsible for handling the paperwork and processing the rebate.
Can rebates be applied retroactively?
Rebates will be retroactive at the discretion of each state, according to state energy offices.
Is it possible to combine rebates and tax credits?
HOMES and HEERHA rebates cannot be used for the same upgrade, but they can be combined for separate upgrades, such as upgrading your water heater with HEERHA and upgrading your heat pump with HOMES.
Inflation Reduction Act tax credits can still be claimed while getting HEEHRA and HOMES rebates.
What should I do first?
Whether you need heat pumps, electrical upgrades, energy efficient plumbing, or any other type of Inflation Reduction act incentive, Integrity Home Solutions’ trusted experts in Tampa, FL know all the ins and outs of the Inflation Reduction Act incentives and can provide you with all the information you need to apply for the tax credits or rebates you qualify for. Call us today at 813-590-7898 to schedule an appointment or ask any questions.
