Utah Inflation Reduction Act: Why Homeowners Should Take Notice
The Utah Inflation Reduction Act of 2022 brings a wave of opportunity for homeowners in Salt Lake City, UT. On August 16, 2022, lawmakers signed this act to incentivize the replacement of old, inefficient appliances with high-efficiency alternatives, with the law becoming effective in January 2023. These changes promise reduced costs and come with substantial tax credits and rebates, putting significant savings in your pocket. Here’s how you can make the most of these benefits while they are available.
Call (801) 218-2187 or contact us online to schedule your free visit with one of our experienced comfort advisors. After all, you have a partner in Western.
Maximizing Benefits with Western Heating, Air & Plumbing
Understanding where and how to optimize your home’s efficiency can take time and effort. Western Heating, Air & Plumbing, with their expert advice and years of experience, can help you identify areas where you can save money and reduce your carbon footprint. This guidance is crucial for taking full advantage of the tax credits and rebates available through the Inflation Reduction Act.
HVAC Tax Credits: What You Need to Know
The Inflation Reduction Act enhances the Energy Efficient Home Improvement Credit (Section 25C) and the Residential Clean Energy Credit (Section 25D). These credits apply to installations made between 2023 and 2032, offering a 30 percent tax credit for various high-efficiency systems:
- Air Conditioners: Up to $600 tax credit
- Heat Pumps: Up to $2,000 tax credit
- Furnaces and Boilers: Up to $600 tax credit
- Geothermal Systems: Uncapped 30 percent tax credit
- Solar Paneling: Uncapped 30 percent tax credit
If you installed rooftop solar or a heat pump in 2022, specific credits apply retroactively, offering additional savings.
Eligibility Requirements for HVAC Products
Homeowners must meet specific standards to qualify for these tax credits:
- Air-Source Heat Pumps: Must have the ENERGY STAR® label.
- Split Air Conditioner Systems: Require a Seasonal Energy Efficiency Rating 2 (SEER2) of 16 or more.
- Packaged Systems: Must have ENERGY STAR certification.
- Gas Furnaces: Must have an annual fuel utilization efficiency (AFUE) rating of at least 97 percent.
- Gas Boilers: Require an AFUE of at least 95 percent.
- Oil-Fueled Boilers and Furnaces: Must be capable of using fuel blends.
HVAC Rebates: Significant Savings for Homeowners
The act allocates a $4.3 billion budget for state-distributed rebates. These funds will vary by state and are income-based. The High-Efficiency Electric Home Rebate Act (HEEHRA) offers substantial rebates for electrification projects:
- Heat Pumps: Up to $8,000
- Breaker Box Upgrades: Up to $4,000
- Electric Wiring Upgrades: Up to $2,500
- Heat Pump Water Heaters: Up to $1,750
- Insulation, Air Sealing, and Ventilation: Up to $1,600
- Electric Stoves, Cooktops, Ranges, Ovens, and Clothes Dryers: Up to $840 each
These rebates cover 100 percent of project costs for low-income households (up to $14,000) and 50 percent for moderate-income households (up to $14,000). However, the program is not retroactive to 2022.
Act Now to Reap the Benefits
The up-front cost of upgrading heating and cooling systems can be a significant barrier for many homeowners. The Inflation Reduction Act of 2022 addresses this issue head-on, making high-efficiency upgrades more accessible. Taking advantage of the available tax credits and rebates can lower your energy costs and reduce your environmental impact. Act now to reap the benefits.
Contact Western Heating, Air & Plumbing today to learn more about how you can benefit from the Inflation Reduction Act. Call (801) 218-2187 or visit us online to schedule your consultation and begin your journey toward a more efficient and cost-effective home.
