Saving Money on HVAC Systems with the Inflation Reduction Act
A new HVAC system can be a dramatic upgrade to your home. With a new system, you’ll get far better performance than what you will get from outdated heating and cooling equipment, and you will save money month after month thanks to increased efficiency. However, there is the upfront cost of new HVAC equipment to keep in mind – this is a significant cost that must be budgeted for carefully. This article will detail how you may be able to save money on this purchase through the use of the Inflation Reduction Act.
When you are ready to choose an HVAC company for this project, make sure Berico is your first call. With a long and successful history in Greensboro HVAC, Berico is a leader in this market and will always exceed your expectations.
Inflation Reduction Act – A Quick Introduction
It’s beyond the scope of this article to dive too deeply into the specifics of what the Inflation Reduction Act is and why it is important. The basics are that it was put into law in August of 2022, and it is intended to address a number of issues including drug costs and climate matters. Like everything that makes its way through the legislative process, this bill was negotiated and debated back and forth until it took on a form that was agreeable to enough people to get the votes required to become law.
The focus on environmental matters within this bill is what allows it to help out homeowners with a need for a new HVAC system. There is a push to upgrade as many homes as possible to more efficient systems, but those systems can be expensive, and people tend to use their old systems for as long as possible. By incentivizing homeowners to make the switch, this bill can speed up the adoption of more efficient HVAC equipment – if you are thinking about making such a switch, it’s important to know what assistance is available.
An Attractive Offer
Let’s take a moment to get into the specifics of what is available through the Inflation Reduction Act. Effective starting in 2023, this is a tax credit program that provides homeowners with credits when they install qualified equipment. On an annual basis, you can get up to 30% of the installed costs of a qualifying piece of HVAC equipment. There is a maximum total of $1,200 available annually, with up to six hundred each for an air conditioner or furnace. Heat pumps fall into a separate category and have a tax credit limit of $2,000.
The money that is available through this program is provided as a tax credit when you file at the end of the year. So, you’ll need to either finance the purchase of the equipment or pay in full when making the purchase and having it installed, but you’ll know that some of that money is going to come back through the tax credit. There is no income requirement for this tax credit either, so everyone is eligible. It may be a good idea to work with a tax professional when that time comes to make sure you are filing correctly and claiming the credit that you deserve as a result of the HVAC purchase.
Benefits That Go Beyond the Tax Offer
Most likely, the tax credit available through the Inflation Reduction Act won’t be the single reason that you decide to buy new HVAC equipment. Instead, it could serve as a tipping point for you to decide to make a purchase that you were considering anyway. If you’ve been considering upgrading to new, more efficient gear, it might now be appealing enough to make it happen knowing that you are going to get some money back on the purchase.
So, in addition to the financial benefits of utilizing this offer from the government, what other reasons could you have in mind for upgrading your HVAC system? Consider the points below –
- Get rid of frustrating downtime. If you are still running a relatively old system in your home, it’s likely that you deal with periodic downtime when the system isn’t working and needs to be repaired. That’s frustrating, of course, and those repairs can also get expensive. When a new system is in place, you’ll likely be able to avoid the need for any repairs in the near future, and if anything does come up, it should be covered by the warranty.
- Cut down on energy costs. The savings from installing new equipment can also extend to the money that you will no longer be spending on your monthly utility bill. Since this new equipment is much more efficient than what you have been using, it will burn less fuel from month to month, and you won’t have to pay as much to keep your home warm or cool. You can feel good about the positive environmental impact of this upgrade, and you’ll certainly enjoy not paying as much to the utility company.
- Better performance. New equipment can also be expected to do a better job of keeping your house comfortable throughout the year. An old system may not be able to warm or cool all parts of your house effectively any longer, or if it can, it may take a long time to get into the temperature sweet spot. As soon as your new equipment has been installed, you’ll immediately notice an improvement in performance, and you may wonder what took you so long to make the change.
If you are looking to have a new HVAC system installed, trust Berico with the job. Likewise, if you need other work such as heating repair, air conditioner repair, or anything else related to your HVAC system, Berico is up to the task. Take a moment today to reach out and make your first appointment.
