Here’s one silver lining of tax time: there are fantastic tax rebates available to help make heating and cooling upgrades more affordable!
The federal government currently offers tax credits to homeowners who install energy efficient heating and cooling equipment. This includes central air conditioners, heat pumps, furnaces, boilers, and more! The rebates aim to encourage people to swap out outdated systems for new models that save energy and money over time.
Here are the key details on which products are eligible and how much money you can get:
Central AC units with a SEER rating of 16 or greater qualify, as do ENERGY STAR certified packaged AC systems. For furnaces, the rebate applies to efficient natural gas or oil fueled models. (When selecting new equipment, be sure to verify the SEER rating and ENERGY STAR certification before purchasing to ensure it meets the requirements.) The rebate amount is 30% of the total installation cost, up to a maximum of $600 for ACs and furnaces. Every little bit helps when making big upgrades.
There are also tax credits available for heat pumps, boilers, insulation, windows, and more energy efficient home upgrades. The total rebate limit across all categories is $1,200 to $3,200 depending on the type of upgrade. For example, by installing a qualified heat pump you could get up to $2,000 back!
To claim these credits, save your receipts and installation invoices.
When tax time comes around, complete IRS Form 5695 and submit it with your federal tax return.
The rebates will help lower your tax bill for the year! (Use a tax preparer if you need help navigating the paperwork.)
So don’t sweat it this season! Take advantage of tax credits to replace old equipment and start saving. With the extra money in your pocket, you’ll be chillin’ in comfort and some welcome energy savings.
Need help with your home comfort? Contact Ballard online or give us a call today: 909-297-1914