Did you know that you could get rewarded for being energy efficient? The IRS has a bunch of tax incentives that benefit energy-conscious homeowners. We understand that tax season is stressful, and you don’t have much time to look into any tax incentives, but this one is simple! With these tax credits, you can save money by managing your HVAC energy consumption. With his tax incentive, you get tax credits for your investments in energy-efficient installations. Take a look at these federal tax incentives to see how you can pay less tax.
Federal Energy Tax Credit
Tax credits are subtracted from the amount of money you owe the IRS. These are not the same as tax deductions that reduce your taxable income, but tax credits reduce the amount of tax you owe to the IRS.
You can claim these federal tax credits when you can prove that you have made improvements to your home to make it more energy-efficient. If you can make these adjustments before 1 January 2024, you can qualify for these credits. You also have to meet the other qualification requirements.
Types of Tax Credits
The two types of tax credits include residential and non-business.
Residential Tax Credits
Residential tax credits include:
- Solar panels
- Solar-powered water heaters
- Geothermal heat pumps
If a resident of the United States installs alternate power source equipment, they can claim these residential tax credits. A certain percentage will be deducted from the amount of tax you owe the IRS. The percentages work in this way:
- 30% for changes made between December 31, 2016 – January 1, 2020
- 26% for changes made between December 31, 2019 – January 1, 2023
- 22% for changes made between December 31, 2022 – January 1, 2024
Non-Business Tax Credit
These tax credits are for materials and equipment for roofs, windows, and insulation that meet the requirements of the Department of Energy. You can claim these credits for any qualifying home adjustments made in 2021. Your tax credit would cover 10% of the equipment cost, as well as insulation, electric heat pumps, and central AC.
Tax Credits Requirements
So, you are won over by these amazing tax credits. How do you qualify for them? You can qualify for tax credits when you buy Energy Star products, such as:
- Air Source Heat Pumps
- Central Air Conditioning
- Gas, propane, or Oil Hot Water Boilers
- Gas, propane, or oil furnaces and fans
- Non-solar water heaters
- Advanced Main Air Circulating Fan
- Biomass Stove
Are you looking for an HVAC contractor in Sunrise, FL? JackRabbit Air Conditioning can help you install energy-efficient appliances to help you claim tax credits. Contact us for your energy-efficient home improvements in Sunrise. We are happy to help!
Increase Your Efficiency with Air Duct Replacements in Sunrise
If you have a central AC system in Sunrise, you have ducts running through your home. Ductwork plays an integral role in maintaining your home’s efficiency. You can make your home more energy efficient when you call JackRabbit Air Conditioning for an air duct replacement in Sunrise. When your ductwork in Sunrise is in poor condition, cool air can escape through punctures and leaks in your ductwork. This means that your AC unit stays on longer to get your home to the correct temperature set on your thermostat. The longer your AC unit runs, the more energy it uses. Contact us for your air duct replacement in Sunrise.
HVAC System Maintenance in Sunrise
JackRabbit Air Conditioning can help with all your HVAC system maintenance in Sunrise. Regular maintenance is the key to energy efficiency. An essential part of maintaining your HVAC system is cleaning the unit thoroughly. Dirt can clog your system and make it harder for your unit to cool your home. Your HVAC system will cause a spike in your utility bills if you neglect your regular tune-ups. We will also inspect each component to ensure that it works properly. Take care of your central AC in Sunrise. After all, it takes care of you on those hot days.
Reliable HVAC Contractor in Sunrise, FL
When you hire JackRabbit Air Conditioning to handle all your HVAC maintenance, repairs, and installations, you are guaranteed excellent service. We will ensure that your HVAC system runs smoothly all year round to keep you and your family comfortable. You can rely on us for your energy-efficient home improvements in Sunrise.