
Get More Green With Tax Breaks for Home Energy Upgrades
Are you considering a home improvement upgrade? There’s exciting news for you, whether you’re looking for a new HVAC system, a water heater, or enhanced insulation. The Inflation Reduction Act (IRA) significantly improved tax credits for energy-efficient home improvements, making it easier than ever to save money while helping the environment.
The IRA empowers Americans to make their homes more energy-efficient by providing federal tax credits and deductions. Through 2032, federal income tax credits of up to $3,200 annually are available to homeowners to lower the cost of energy-efficient home upgrades by up to 30 percent. Let’s dive into the key incentives and how to take advantage of them.
Energy Efficient Home Improvement Credit (25C)
A cornerstone of the IRA, the 25C credit enables homeowners to claim a 30% tax deduction—up to $1,200—on eligible energy-efficient upgrades through 2032. Heat pumps and heat pump water heaters qualify for an increased annual credit limit of $2,000.
This credit applies to a wide range of improvements, including:
- High-efficiency HVAC systems
- Insulation and air sealing
- Water heaters
- Energy-efficient windows and doors
- Home energy audits – a $150 credit
High-Efficiency Electric Home Rebate Act (HEEHRA)
This isn’t a tax credit but a point-of-sale rebate when a homeowner purchases. The HEEHRA program provides up to $14,000 per household in point-of-purchase rebates for low- and moderate-income families. Qualified electrification projects include heat pump HVAC systems, heat pump water heaters, electric stoves and cooktops, and heat pump clothes dryers. It also enables measures such as upgrading circuit panels, insulation, air sealing, ventilation, and wiring.
Taking Advantage of the Incentives
To claim IRA credits, you must keep receipts for your qualified improvements and file them with your tax return. It’s always best to consult a tax professional to claim the credit correctly.
Some of the Fine Print
Your home must be in the U.S., and it must be an existing home that you improve or add onto. This credit does not apply to a newly built home. You may not claim the credit if you’re a landlord or other property owner and you do not live in the home. The credits have no lifetime dollar limits, and homeowners may claim the maximum annual credit every year that eligible improvements are made through 2032. The credits are nonrefundable, so you cannot get back more on the credit than you owe in taxes. You may not apply any excess credit to future tax years.
The Bottom Line
Investing in energy efficiency is a win-win. You’ll save money on your monthly utility bills, increase your home’s comfort, and do your part to reduce your carbon footprint. Thanks to the Inflation Reduction Act, there’s no better time to make the switch! Let Goettl’s experts upgrade your home’s systems and help you save the environment and your wallet.
Here’s where you can find more information on how to get the tax credits and what qualifies:
- IRS Energy Efficient Home Improvement Credit
- ENERGY STAR Qualified Products
- Federal Tax Credits for Energy Efficiency
Disclaimer: Always consult with a tax professional to navigate the specific qualifications for each credit, ensuring you maximize your benefits and comply with all requirements.
Testimonials
What Our Customers Say About Us
After note. Cameron came back by a day later to check on readings he wasn't able to get on first appointment. I have high confidence in his work. I'm very likely to work with them again
Brayan and Marcos did an awesome job on the new ac installation. Installed with no issues and has been on ever since. Perfect time with summer coming up. Walked through and job was very clean and organized. Great work ethic. Great guys.
Good Customer Service is terribly undervalued. GREAT customer service is almost unheard of nowadays. That above all, when paired with truly quality work will always ensure not only a return customer, but also brand loyalty.
Update - our air conditioner went out today (10/26/23) and JEHAD showed up to repair the issue but the issue was bigger than expected. Tomorrow we will have a brand new system! Goettl is an EPIC firm that treats customers right. Thank you again JEHAD for going above and beyond.
Goettl is the epitome of what excellent customer service is! Our Drain King, DAREAN, addressed all of our questions and concerns and not only unclogged our drain but went above and beyond to show us our drains leading to the street were free and clear of any other issues. Thank you Darean and thank you Goettl for a great experience!
Update: great experience with Edgar Loredo who kept it real with us and was very transparent. I appreciate his honesty and recommendations. Will be requesting him as our technician in the future if we choose to use Goettl
2/15/23
Thank you, Jorge G. Again for being so honest about our unit issues.
Kathy
H. Navarro
Frank Soto, plumber was very thorough in his assessment of the problem. Provided options and was patient in waiting for our decision. We are very pleased with Frank's knowledge plus his warm personality was a plus. Thank you Frank.
H. Navarro
Jeremy Ortega service tech did an excellent job removing, cleaning and reinstalling the flame sensors along with servicing the HVAC blowers. We are set for the next 2 years. Thanks again Jeremy.
H. Navarro
Thank you!
09/19/2024 - Husam Ismail did an outstanding job!!! Very personable and honest, so far with my experience with
Goettl he is the best technician that i have encountered.
02/11/2024 - Josh L. did a fabulous job!!! He was very personable and fast. Great experience, I would recommend Goettl to anyone.
Today is 21 July Sam stopped by and service was excellent 👌. Ralph was excellent, great customer service
Thank you goettl
Explain testing and clarified cost.
I was impressed.
Brayan, Jason, and Christian were the three techs who installed the unit and new ducts. They showed excellent work ethic. They cleaned up all debris, and most importantly, the system works perfectly. Today Ignacio came and inspected the work, and found no problems at all. The entire team has earned 5 stars.
November 6, 2024. The team Brayan, Christian and Jason worked awesome in replacing our whole A/C system and air ducts. They were respectful of our property, answered our questions without hesitation. They all did a fantastic job. We thank ya'll for your services and definitely recommend your business. We appreciate you.
November 7, 2024: Ignacio inspected the newly installed air condition and duct system. He was very knowledgeable, and good expertise. He listened and answered our questions and concerns..he helped us to install our Sensi a/c and heater app..
Fe Alexander
Leticia and Ed Baca
We had an blockage in our sewer line.
Tyler Leija was dispatched the same day, and found the blockage using a camera tool.
He cleared the blockage temporarily.
The actual fix would require digging up and replacing the bad area of pipe.
Paulo "Adrian" Dado and his crew came out the next day with backhoe, dug up the area, and replaced the section of pipe.
The next day, after inspection, Adrian and his crew filled in the hole and then cleaned up the area.
This is a brief description. There was A LOT of work involved.
Very professional work.
Our tech Jorge that came out the day before helped quickly assess the situation and get us set up for a new system and water heater. Jorge was very friendly, would highly recommend!
Frank did an excellent job at explaining every thing in terms that were understandable to both myself and my wife. This greatly assisted in making the right decision to look at all options on either repair or update/purchase for the future and in the long term, saving money.
Will definitely call and use
Goettle again and I will ask if Darrean could help again.
Couldn’t be happier. Came all the options