What the Inflation Reduction Act (IRA) Means for You Tax Credits and Rebates
Have you been considering an upgrade to your home’s HVAC system, water heater, and electrical box? Now may be the best time with the incredible savings that are available on your new equipment and installation costs provided by the Inflation Reduction Act.
TAX CREDITS AVAILABLE
January 1, 2023
Graph titled "25C Tax Credit (Covers 30% of Cost)" Total Annual Credit : $3,200 Heat Pump: $2,000 Other Upgrades: $1,200 Annual Credit For Heat Pumps and Heap 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: $600 Insulation: $1,200 Energy Audit: $150
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What is the Inflation Reduction Act?
Signed into law in August 2022, the Inflation Reduction Act has allocated over $369 billion in the form of tax credits and rebates to benefit homeowners who make energy efficient upgrades. For families who purchase heat pumps or other energy efficient home appliances, this new legislation provides savings of more than $14,000 in consumer rebates and tax incentives. These energy efficient upgrades can save homeowners in Kansas City, MO over $600 annually on their energy bills. While rebates are will not be available until the end of 2023, tax credits are available now to all customers.
Contact KB Complete or call (816) 327-1709 today to learn more about how you can save money this year through rebates and tax incentives.
25C Energy Efficient Home Improvement Tax Credit
From January 1st, 2023, households can benefit from built-in credits for making energy-efficient choices under the Inflation Reduction Act, resulting in savings on taxes. An example of this is the Energy Efficient Home Improvement Tax Credit, which expands the 25C tax credit. Homeowners can now deduct up to 30% of the total cost of specific home improvements, with an annual limit of $3200. However, it’s important to note that the upgrades must meet relevant requirements of the Consortium For Energy Efficiency and Energy Star to be eligible for factoring into your tax credit. Overall, this is an excellent opportunity to save money while also making your home more energy-efficient.
Our home service professionals at KB Complete can provide you with expert help and guidance when you are ready for your energy efficient upgrades.
Contact us online or call (816) 327-1709 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 for tax credit. 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. Our professionals at KB Complete can help you select the right upgrades to qualify for the 25C tax credit.
How Do I Claim my Tax Credits?
Our team at KB Complete will provide you with all the proper documentation to easily claim your home upgrade tax credits when you file your taxes.
Let KB Complete help you get the most of your tax credits. Contact us today or call (816) 327-1709 for assistance.
What’s to Come With Rebates….
High-Efficiency Electric Home Rebate (HEEHRA)
To help low- and middle-income homeowners save on energy-efficient upgrades, the High-Efficiency Electric Home Rebate program provides instant discounts at the point of sale. Through this program, eligible households can save up to $14,000 on upgrades, with the rebate covering the full cost of electrification for low-income households and 50% of the cost for moderate-income households, including equipment and professional installation. To qualify for this program, households must have an income below 150% of the area median. This program provides an excellent opportunity for eligible homeowners to make energy-efficient upgrades to their homes while saving money.
Are Rebates Available Now?
The HEEHRA and HOMES rebate is not available right now, but rebate programs will start sometime at the end of 2023 or beginning of 2024 through your State Energy Offices. The timing of these depends on your state of residence and on the Department of Energy guidance, so be sure to check with KB Complete to see if rebates are available when you’re ready to purchase.
Tax Credits and Rebates—what’s the difference?
A tax credit is money that will be given back to customers when they file their taxes. Families can earn up to $3200 in tax credits with the 25C tax credit every year. Conversely, a rebate is an off-the-top discount at point of sale and will provide customers with upfront savings. Rebates will not be available until end of 2023 or the beginning of 2024. Contact KB Complete to stay updated on the latest news on when rebates will be available in Kansas City, MO.
Does 25C have efficiency requirements?
Yes, 25C upgrades must meet the Consortium for Energy Efficiency’s highest non-advanced tier and Energy Star requirements. Our professionals at KB Complete can help you select the right upgrades to qualify for the 25C tax credit.
Whole Home Energy Reduction Rebate Program (HOMES)
To encourage energy conservation, the HOMES rebate program offers reimbursement to homeowners who make whole-house energy improvements. Eligible households can receive $2000-$8000 in rebates, depending on the amount of energy saved. Low- and middle-income households can receive $4000-$8000 or 80% of project costs, while high-income households can receive $2000-$4000 or 50% of project costs, for energy savings of 20%-35% or more. The rebates are based on energy savings performance, measured by a threshold of either 20% modeled savings (pre-upgrade) or 15% measured savings (post-upgrade), with larger rebates for greater energy savings. Low- to moderate-income households can qualify for up to $8000 in rebates and 80% of project costs. The HOMES rebate program is open to all households, but low- and middle-income households may receive more significant cashback. This program offers an excellent opportunity for homeowners to save energy and reduce their expenses.
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 for tax credit. 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. Our professionals at KB Complete can help you select the right upgrades to qualify for the 25C tax credit.
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 KB Complete show you can maximize savings with qualified energy efficient upgrades. The KB Complete team is ready to help you every step of the way.
*Disclaimer: KB Complete does not guarantee the availability of tax credits or rebate funds, nor the specific rebate or credit amounts that may be available to each individual. Rebates and tax credits are subject to change and may vary depending on factors such as geographic location, income level, and the specific details of the heating and cooling system being installed. While we make every effort to provide accurate and up-to-date information about available rebates and tax credits, it is ultimately the responsibility of the homeowner to research and verify eligibility for any available incentives. In addition, please note that the information provided by KB Complete regarding tax credits is for general informational purposes only and should not be considered tax advice. Homeowners should consult with a qualified tax advisor to determine their eligibility for tax credits and to receive specific advice on their individual tax situation. KB Complete is not responsible for any errors or omissions in the information provided, and we make no guarantees or warranties regarding the availability or applicability of any tax credits or rebates.
