Getting Credit – On Your Taxes

Energy Efficient Home Improvement Credit

As 2023 draws to a close, you may want to think about what improvements you’ve done to your home that reduce your energy bills. It turns out that with the 25c tax credit (officially, the Energy Efficient Home Improvement Credit) such improvements might also cut your IRS tax bill. Things like installing solar panels, replacing a traditional water heater with a tankless model, getting double-glazed windows and so on qualify you for tax reductions. The credit for the measures vary; you can get more details at the official IRS website.

If you didn’t take advantage of the 2023 tax credit, you might want to plan on getting the credit for 2024.

The 25c credit has been around for over a decade, but was expanded significantly for 2023 and extended out for another ten years. The single largest energy consumer in most homes is the air conditioner. Replacing it with an energy-efficient model nets a $600 credit, or replacing it with a heat pump gets a $2,000 credit. Of course, a more efficient air conditioner also translates into lower electric bills.

If your summer cooling bill was over $400/mo, going with a new model can cut that kind of cooling bill in half. So you save twice; once when you file your taxes and again as the summer heat meets defeat with a new cooling system keeping you cool while saving you money. If you don’t want to wait until the summer to start saving, a $600 credit is also on offer for high efficiency furnaces. And other appliances such as water heaters and electrical panel upgrades can get credits of their own.

If you have questions or want to get more details, feel free to call the Air-Tro professionals at (626) 357-3535. We’ll help you get the best in HVAC equipment for your home while qualifying for any credit or rebate programs available.