The 2023 Inflation Reduction Act
The 2023 Inflation Reduction Act offers homeowners in Salem, Keizer, Woodburn, Wilsonville, and the surrounding areas of Oregon the opportunity to upgrade their homes and reduce their energy costs. Advantage Heating & Air Conditioning, LLC, a leading provider of home heating and cooling services in the region, can help homeowners take advantage of the new law and enjoy significant savings on their energy bills.
Understanding the Inflation Reduction Act
The Inflation Reduction Act of 2023 is designed to help homeowners reduce their energy costs by making their homes more energy-efficient. The law offers tax credits for a variety of home energy upgrades, including insulation, heat pumps, windows, water heaters, and natural gas furnaces. Homeowners can claim these credits when filing their 2023 tax return in 2024, which can significantly reduce the amount of taxes they owe or increase their tax refund.
What Homeowners Should Know
Homeowners should begin by looking around their homes or consulting one of our HVAC professionals for a home energy audit to figure out their easiest potential upgrades with the greatest return on investment. Here are some things homeowners should know:
- For many homeowners, insulation is the first significant upgrade that can help them save on energy costs.
- Tax credits for heat pumps can go up to $2,000.
- New windows, water heaters, and natural gas furnaces all have a cap of $600.
- Homeowners don’t have to rush out and do all of their upgrades at once. Almost all of the upgrade incentives will be around for another 10 years, so it might make more financial sense for homeowners to do them one at a time.
Homeowners that upgrade their home heating and cooling systems may be eligible for the energy-efficient home improvement credit. This credit is available for installing new doors, windows, skylights, insulation, and heat pumps that more efficiently regulate a home’s temperature. The credit may also cover the cost of a home energy audit, water heaters, and upgrades to electrical systems necessary to install new electrical equipment.
Homeowners that install residential clean energy units may be eligible for the residential clean energy credit. This credit is available for the installation of residential solar, small-scale wind, geothermal heat pumps, home battery storage, and fuel cell energy systems. Each of these installations is subject to its own eligibility criteria and maximum credit limits. If this credit is greater than the taxes owed by a taxpayer in a given year, the excess credit may be carried forward into the next year.
Cash Incentives and Savings
In addition to the tax credits offered by the Inflation Reduction Act of 2023, homeowners in Oregon can also take advantage of cash incentives to help lower the cost of making specific home energy upgrades. These incentives can be obtained through retailers or trusted contractors. By working with Advantage Heating & Air Conditioning, LLC, homeowners can be sure that they are getting the best deal on their home energy upgrades and maximizing their savings.
The Inflation Reduction Act of 2023 is an excellent opportunity for homeowners in the surrounding Oregon areas to take advantage of this new law, upgrade their homes, and save on their energy bills. Advantage Heating & Air Conditioning, LLC can help homeowners understand the impact of the new initiative and enjoy all the savings that come with it. From insulation, heat pumps, windows, and water heaters, there are a variety of upgrades that homeowners can make to their homes to reduce their energy costs and protect against inflation.