Inflation Reduction Act
Navigating the 2023 Inflation Reduction Act
The Inflation Reduction Act (IRA) of 2023 is a law designed to limit inflation by reducing the deficit and addressing some of the most significant issues facing the United States in climate control and health care. As a homeowner, you may wonder how this bill affects you and how you can take advantage of its benefits. Mr. Breeze Heating and Cooling is here to help you make the most of the IRA and its tax credits, AC rebates, and heat pump rebates if you live in Leavenworth, Lansing, Basehor, and the surrounding Kansas areas.
Understanding the IRA
The IRA includes clean energy tax credits and other relevant tax incentives that homeowners can benefit from when they make green upgrades. The law’s primary objective is to address climate change and ultimately slow global warming. By primarily encouraging businesses to become more eco-friendly and take clean energy production seriously, the IRA also includes benefits for individual Americans.
How the IRA Can Help Homeowners
Homeowners in Leavenworth, Lansing, Basehor, and the surrounding Kansas areas can reduce their tax bill through AC rebates, heat pump rebates, and tax credits for energy-efficient windows, doors, water heaters, furnaces, and heating and cooling systems. The best way to start is by looking around your home or consulting a professional for a home energy audit to figure out the easiest potential upgrades with the greatest return on investment. Each of those upgrades is subject to its own tax credit for up to 30% of the total cost, but each credit has a different limit on how much you’ll get back on your taxes. The cap for insulation is set at $1,200, while 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. Almost all of the upgrade incentives will be around for another 10 years, so it might make more financial sense for homeowners to do upgrades one at a time.
Benefits Available To You
Mr. Breeze Heating and Cooling can help you make the most of the IRA and its rebates and tax credits. Our team of experts can help you identify potential upgrades and retrofits that can help you save on your energy bills. We can also help you understand the various tax credits and rebates available for different upgrades and purchases.
For example, homeowners that upgrade and retrofit 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 for the installation of new electrical equipment.
Switching to a heat pump alone could save a household from $500 to $1,000 yearly in heating and cooling costs. By working with Mr. Breeze Heating and Cooling you can take advantage of the IRA’s rebates and tax credits and make energy-efficient upgrades that can help you save money on your energy bills.
