2023 Tax Rebate Incentives
Skylake Heating & Air wants to help our Utah customers live a greener lifestyle. We offer high-efficiency products tailored to your needs and budget. Call us today to schedule an energy audit of your Orem home and find ways to start saving money.
The Inflation Reduction Act addresses this issue. From electric vehicles and furnaces to solar paneling and heat pumps, the IRA is a blueprint to help you electrify. It encourages homeowners and businesses to replace any machinery that burns fossil fuels.
Take Advantage of Inflation Reduction Act Benefits
Depending on your household income, you could qualify for up to $1,750 in rebates through the Inflation Reduction Act. Skylake Heating & Air can tell you what rebates and other incentives are available to you with the purchase of a heat pump water heater.
The new law also covers other purchases, such as insulation, heat pumps, electric stoves, solar panels, and electric vehicles. Call us today for a free consultation on making your home more efficient.
Creating a Greener Home
Going green is a national trend, as several states around the country are discouraging natural gas hookups in new construction while offering incentives on environmentally friendly equipment.
Now is the time to consider the switch to an electric heat pump when you are ready to swap out your old furnace and AC unit. The Inflation Reduction Act makes the transition cost-effective and convenient.
To sum it up, here are just a few of the benefits you’ll enjoy by upgrading to a heat pump water heater:
- Fewer greenhouse gas emissions
- Lower operating costs
- Multiple rebates available
- Different-sized models are available to meet the specific needs of your household
- Timely and efficient installation by our Skylake Heating and Air professionals
Call us today to learn more about heat pump water heaters and other upgrades that can improve your comfort and surroundings.
Understanding the Federal Tax Incentives for Geothermal Heat Pumps
The 30% federal tax credit was extended through 2032 and will drop to 26% in 2033 and to 22% in 2034 before expiring altogether, so act now for the most savings!
The Energy Credit
In August 2022, the 30% tax credit for geothermal heat pump installations was extended through 2032 and can be retroactively applied to installations “placed in service” on January 1, 2022 or later. Property is usually considered to be placed in service when installation is complete and equipment is ready for use. However, if the system is part of the construction or renovation of a house, it’s considered placed in service when the taxpayer takes residence in the house. To save the most on your installation, you’ll want to act quickly—this credit will drop to 26% in 2033 and 22% in 2034 before expiring altogether.
- 30% of total system cost in 2022 through 2032
- 26% of total system cost in 2033
- 22% of total system cost in 2034
- No limit to credit amount
- Can be used to offset alternative minimum tax (AMT)
- Can be used in more than one year
- Can be combined with solar and wind tax credits
- Can be combined with energy efficiency upgrade credits
Geothermal equipment that uses the stored solar energy from the ground for heating and cooling and that meets ENERGY STAR requirements at the time of installation is eligible for the tax credit. Covered expenditures include labor for onsite preparation, assembly, or original system installation and for piping or wiring to connect a system to the home. The structure must be located in the United States and used as a residence by the taxpayer, although primary residency isn’t required. In fact, if geothermal
is installed in more than one home, there’s no limitation on the number of times the credit can be claimed.
The credit can’t be claimed for spending on equipment used solely for hot tub or pool conditioning, nor on previously used equipment. Rental home installations also cannot be claimed. As of November 2013, electric strip heat and ductwork distribution systems are no longer included in the tax credit calculation.
How to Claim the Credit
Use IRS Form 5695 to claim the Residential Energy Efficient Property Credit, and there’s no limit on the credit amount. The tax credit can be used to offset both regular income taxes and alternative minimum taxes (AMT). If the federal tax credit exceeds tax liability, the excess amount may be carried forward into future years. Spending on geothermal heat pump property adds to your home’s cost basis but also must be reduced by the amount of the tax credit received.
Call us today to learn more about tax credits for geothermal heat pump installations.
Look here for more information on local rebates: https://www.buildwithrise.com/rebate-finder/us/ut