How the Inflation Reduction Act can save you money on electrical and plumbing upgrades in Salt Lake City
If you’ve been considering making electrical and/or plumbing upgrades to your home, 2023 is your year! The Inflation Reduction Act (IRA) offers significant tax credits and rebates that can help you make the upgrades to lower your carbon footprint and make your home more energy efficient.
In addition to helping reduce the effects of carbon pollution, the Inflation Reduction Act will help individual homeowners in Salt Lake City who want to make energy efficient upgrades. The IRA provides generous funding in the form of tax credits and rebates on qualifying purchase, and you’ll also save money on your utility bills in the long run!
How the IRA can save you money on electrical and plumbing home improvements
Replacing old electrical systems or water heaters can save you money in the long run on your energy bills. However, the Inflation Reduction Act can save you more than $17,000 per year in tax credits and rebates on qualifying purchases!
Electrical panel updates
Electrical panels (also referred to as panelboard, sub panelboard, or breaker boxes) are connected to your home’s main power supply and they distribute electricity to various parts of your home. These are easy to take for granted as long as they are working properly, but there are simple upgrades you can make for better energy efficiency and cost savings.
If your home is more than 25 years old and your electrical panel is part of the original wiring, it’s probably time for an upgrade. Today’s households generally have more powered appliances that need electricity, so older homes may need upgraded panels to keep up. While electrical work may seem daunting, it’s an important way to keep you family safe, and to save money and energy. Call Whipple Service Champions at (385) 446-2026 to get an expert assessment of the panel upgrades that are best for your home.
IRA TAX CREDIT FOR ELECTRICAL PANELS: The IRA provides a tax credit of up to $600 for homeowners who upgrade their electrical panels in conjunction with any qualified energy property or upgrade covered in Energy Efficient Home Improvement Tax Credit (25C). You’ll find more information on this credit below.
Water Heater Upgrades and Heat Pump Water Heaters
If your water heater is more than 15 years old, now is a good time to look into getting it replaced. Not only do older models tend to break down, but there are newer options that are more efficient, meaning you will use less water and save money on bills.
Whether you decide to go with a fuel-powered appliance or a newer heat pump water heater depends on a number of factors, including the size of your home and your typical water usage. Conventional water heaters are fueled by natural gas, oil, or propane, and heat water in a tank so it is ready when you need it.
Heat pump water heaters work by moving heat from one place to another, rather than directing heat specifically for hot water. This makes them more energy efficient, and you can see significant savings on your energy bill. The plumbing pros at Whipple Service Champions will inspect your current water heater setup and make a recommendation for what will work best for you.
Inflation Reduction Act TAX CREDIT FOR WATER HEATERS: The IRA provides a tax credit of $600 for water heaters that use natural gas, oil, or propane, and up to $2000 for heat pump water heaters.
Here’s a great savings calculator from Rewiring America that will show you just how much you can save by making energy efficient changes to your home.
IRA 2023 Tax Credits for electrical and plumbing upgrades
Energy Efficiency Home Improvement Tax Credit (25C)
The IRA offers homeowners specific tax credits—up to 30 percent—on home improvements under the Energy Efficiency Home Improvement Tax Credit. This means that any energy efficient plumbing and electrical updates you make, starting on January 1, 2023, will be eligible for a credit of up to 30 percent of the total cost, up to $3200 per year on your federal tax return. Whipple Service Champions can provide you with documentation on your new upgrades to claim these credits when you work with us for electrical and plumbing upgrades.
IRA rebates for electrical and plumbing upgrades
The IRA also includes money for rebates on the purchase of new energy efficient electrical and plumbing appliances and installation. These rebates will be available later in 2023.
The HOMES (Home Owner Managing Energy Savings) rebate is a whole-home, performance based rebate, meaning that the more energy you save by making upgrades, the more money you get back. For example, depending on where you live and your median family income, you can save up to $8000 when you cut your energy use by 35 percent! Everyone in Salt Lake City qualifies for the HOMES Rebate, but low- and medium-income households can get more back. This program provides rebates based on the percentage of energy savings.
NOTE: The HOMES rebate cannot be combined with the HEEHRA Rebates, but can be combined with the Inflation Reduction Act tax credits.
The High-Efficiency Electric Home Rebate Act (HEEHRA) offers as much as $14,000 per year in point-of-sale discounts (not tax deductions) for energy efficient home improvement projects. Like the HOMES rebate, these savings are applied at the point of purchase and are off the top discounts.
Depending on your household income, HEEHRA rebates can cover anywhere from 50% to 100% of qualifying costs, up to $14,000.
NOTE: You are allowed to claim HEEHRA rebates and tax credits.
Contact Whipple Service Champions today to see what kind of energy saving—and money saving!—options are available for your household.
Whipple Service Champions has the electrical, plumbing, and IRA answers you need.
Our experts are trusted in Salt Lake City, Utah and know the ins and out of the IRA rebates and incentives that will apply to your situation. We’ll ensure you receive the rebates you qualify for! Whether you’re looking to make electrical upgrades, find a better water heater for your home, upgrade your electrical panel, or just have questions about these kinds of projects, Whipple Service Champions can help you choose the right system for your home and work with you on what IRA tax credits and rebates apply.