The Inflation Reduction Act (IRA) Has Tax Credits and Rebates for You
If you’ve been thinking about upgrading your home’s HVAC system, water heater, and electrical box, now is the time! The Inflation Reduction Act includes huge savings that are available on your new equipment and installation costs.
TAX CREDITS AVAILABLE January 1, 2023
How Much Can I Save with Tax Credits?
| 25C Tax Credit (Covers 30% of Cost) For Qualified Electrification Upgrades | |
| Total Annual Credit | $3,200 |
| Heat Pump | $2,000 |
| Other Upgrades | $1,200 |
| Annual Credit For Heat Pumps and Heat Pump Water Heater | $2,000 |
| Heat Pump | $2,000 |
| Annual Credit for Other Upgrades | $1,200 |
| Air Conditioner | $600 |
| Furnace | $600 |
| Electrical Panel | $600 |
| Windows | $600 |
| Doors | $500 |
| Insulation | $1,200 |
| Energy Audit | $150 |
What is the Inflation Reduction Act?
The Inflation Reduction Act was signed into law in August 2022 and has allocated over $369 billion in the form of tax credits and rebates to benefit homeowners who make energy-efficient upgrades. This new legislation allows homeowners to save more than $14,000 in consumer rebates and tax incentives for families who purchase heat pumps or other energy-efficient home appliances. In addition, these energy-efficient upgrades can save Tampa, homeowners, over $600 annually on their energy bills. Tax credits are available now, while rebates will be coming later this year or early 2024.
Contact Integrity Home Solutions or call 239-420-7561 today to learn how to save money this year through rebates and tax incentives.
25C Energy Efficient Home Improvement Tax Credit
The Inflation Reduction Act has built-in tax credits for households making energy-efficient choices. The Energy Efficient Home Improvement Tax Credit included in the Inflation Reduction Act is an expansion of the existing 25C tax credit. It allows homeowners to deduct up to 30% of the total cost of certain home improvements, up to $3200 annually. Important: To be eligible for the tax credit, any upgrades you make must meet applicable Consortium For Energy Efficiency and Energy Star requirements.The Tampa home service professionals at Integrity Home Solutions are here to help when you are ready for your energy-efficient upgrades. Contact us online or call 239-420-7561 to schedule your free home energy analysis today.
Do I qualify for the 25C Energy Efficient Home Improvement Tax Credit?
Yes, everyone is eligible for the 25C tax credit. There are no income qualifications; anyone with adequate tax liability to offset can qualify.
Does 25C have efficiency requirements?
Yes, 25C upgrades must meet the Consortium for Energy Efficiency’s highest non-advanced tier and Energy Star requirements. The professionals at Integrity Home Solutions can help you select the right upgrades to qualify for the 25C tax credit.
How do I claim my tax credits?
Integrity Home Solutions will provide you with all the proper documentation to easily claim your home upgrade tax credits when you file your taxes. NOTE: We are not tax professionals and cannot offer filing or other financial advice.
Let Integrity Home Solutions help you get the most out of your tax credits. Contact us today or call 239-420-7561 for assistance.
Rebates Are Coming Soon
High-Efficiency Electric Home Rebate (HEEHRA)
The High-Efficiency Electric Home Rebate program was designed to provide point-of-sale immediate discounts to low- and middle-income homeowners allowing them to save up to $14,000 on energy-efficient upgrades. The program covers 100% of electrification costs for low-income households and 50% of costs for moderate-income households; this includes the cost of the equipment and labor for professional installation. Qualification for this rebate program requires households to fall below 150% of the area median income.
| HEEHRA Rebate Levels For Qualified Electrification Upgrades | |
| Income Eligibility and % Costs Covered | |
| Low Income: <80% Area Median Income (AMI) % costs covered (including installation) | 100% |
| Moderate-Income: <80% Area Median Income (AMI) % costs covered (including installation) | 50% |
| Overall Incentives | |
| Max Consumer Rebate | $14,000 |
| Max Contractor Rebate | $500 |
| Rebates for Qualified Electrification Projects | |
| Heat Pump HVAC | $8,000 |
| Heat Pump Water Heater | $1,750 |
| Electric Stove/Cooktop | $840 |
| Heat Pump Clothes Dryer | $840 |
| Breaker Box | $4,000 |
| Electric Wiring | $2,500 |
| Weatherization insulation, air sealing, ventilation | $1,600 |
Home Owners Managing Energy Savings Rebate Program (HOMES)
The Homeowner Managing Energy Savings (HOMES) rebate program was created to encourage families to cut back on their energy use and will reimburse Tampa, homeowners, anywhere from $2000-$8000 for whole-house energy improvements. The HOMES rebate program applies to homeowners who cut their energy use by 20%-35% (or more). Low- and middle-income households can save $4000-$8000 or 80% of project costs. High-income households can save $2000-$4000 or 50% of project costs. The HOMES rebates are based on the performance of energy savings measured by a threshold of either 20% modeled savings (pre-upgrade) or 15% measured savings (post-upgrade). The more energy you save, the bigger the rebate. All Tampa homeowners qualify for the HOMES rebate program.
Are rebates available now?
The HEEHRA and HOMES rebate programs will start sometime at the end of 2023 or the beginning of 2024 through your state Energy Offices, dependent upon federal Department of Energy guidance. Check with Integrity Home Solutions to see if rebates are available when you’re ready to purchase.
Tax Credits and Rebates—what’s the difference?
Tax credits are given back when you file your taxes. You can earn up to $3200 in tax credits with the 25C tax credit every year.
Rebates are off-the-top discounts on the purchase of qualifying appliances or equipment. Rebates will be available near the end of 2023 or the beginning of 2024. Contact Integrity Home Solutions to stay updated on the latest news on when rebates will be available in The Tampa area.
How do I save on my home upgrades today?
Take advantage of the 25C Energy Efficient Home Improvement tax credit and ask our professionals at Integrity Home Solutions how you can maximize savings with qualified energy-efficient upgrades. The Integrity Home Solutions team is ready to help you every step of the way.
