Affordable HVAC for Home Owners
The Federal Government has approved over $9 Billion in tax rebates to help make high efficiency homes obtainable for all homeowners.
So what does this mean?
Tax Credits
25D - Residential Energy Efficient Property
- Projects in Place 2023-2032 – 30% credit
- Projects in Place 2033 – 26% credit
- Proiects in Place 2034 – 22% credit
25C - Non-Business Energy Property Credit
- Up to 30% of qualifying energy efficiency projects cost
- $1,200 allotted credit per year
- $150 credit for a home energy audit
- $2,000 for heat pumps
45L - Energy Efficient Home and Multifamily Credit
- Incentives up to $5,000 per dwelling unit
- $2,500 for ENERGY STAR certified homes
- $5,000 for Zero Energy Ready certified homes
Rebates
High Efficiency Electrified Homes
Single-family and multi-family rebates are available for families at or below 150% Area Median Income for a maximum rebate of $14,000.
HOMES Program (Homeowner Managing Energy Savings Program)
Projects that achieve a minimum of 20% energy savings will qualify for rebates, with larger rebates available for energy savings over 35% with a maximum rebate of $8,000.
Contact govt@acca.org if you have any questions regarding the IRA 2022.
Homeowner FAQ's
How does a homeowner receive the tax credit incentives?
Homeowners can claim the project costs during their annual tax filing and will receive any financial benefit in their return. Some customers may not get a refund if they don’t have a tax liability, since tax credits serve to offset the tax a customer owes on their annual return.
When will the rebates be available?
Rebates, unlike the tax credits, will likely not be available until the second half of 2023 or later. The Energy Department must first issue rules governing these new programs; states, who will administer the rebate programs, must then apply for the federal grants; and after approval, they can start issuing rebates to customers. Some states may decide not to apply for the grants, meaning the rebates will not be available to homeowners in these states.
How will a customer know if the improvement they purchased qualifies for the credits?
Starting in 2025, the Treasury will have a new system of product identification numbers to verify if property is eligible for the credit. Prior to this date, please rely on the definitions in the statute.
HOMES Program Breakdown
Energy Savings | Single Family | Multi-Family |
|---|---|---|
Modeled Energy Savings | ||
20-35% | The lesser of $2,000 or 50% of the project cost | $2.000 per unit, max $200,000 per building (whichever is less) |
For low-moderate income families, the lesser of $4,000 or 80% of the project cost | ||
Over 35% | The lesser of $4,000 or 50% of the project cost | $4.000 per unit, max of $400,000 per building |
For low-moderate income families, the lesser of $8,000 or 80% of the project costs | ||
Measured Energy Savings | ||
Over 15% | $2,000 per kWh saved equal to 20% reduction for the average home, or 50% of the project cost, no cap | |
For low-moderate income families, $4,000 per kWh saved equal to 20% reduction for average home, or 80% of the project costs | At least 50% of the residents must be low-moderate income, and receive $4.000 per kWh saved equal to 20% reduction for the average home, or 80% of project costs | |
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