Tax Credits

With tax season right around the corner, we’re all looking for ways to save money on our taxes, right? Good news! The IRA includes tax credits for people who make energy-saving changes and upgrades to their homes, like heat pumps, energy-efficient doors and windows, solar, heat pump water heaters, and more.

25C Energy Efficient Home Improvement Tax Credit

We all like saving money on taxes, and the IRA has built-in credits for households making energy efficient choices starting January 1, 2023. The professionals at Whipple Service Champions can give you all the information you need about your appliance options and installation procedures when you’re ready to update.

The Energy Efficient Home Improvement Tax Credit is an expansion of the 25C tax credit that allows homeowners to deduct up to 30% of the cost of certain home improvements, up to $3,200 per year. Take a look at the chart below to see which energy efficient appliances, upgrades, and devices qualify for tax credit.

The qualifying costs for these items include the equipment itself, installation, and labor costs. It’s important to note that these tax credits are not up-front savings. They are factored into your tax credit amount when it’s time to file.

As you might imagine, there are certain requirements for new appliance installations and/or upgrades to you home that must be met in order to qualify for the tax credit. Our team over at Whipple Service Champions can help you select tax credit eligible qualified energy equipment that will not only help you save with tax credits but help save on overall annual utility bills. Check out this chart to see how much you can save in Utah! You can see the full details of the Energy Efficient Home Improvement Tax Credit and equipment eligibility here.

Who is eligible for tax credits?

All homeowners are eligible for the Energy Efficient Home Improvement Tax Credit! The tax credits can be applied to any new qualifying equipment you have installed or upgrades you make after January 1, 2023. Keep in mind that there is an annual cap of $1200 per household per year (not including heat pumps, which cap at $2000), and a total cap of $3200. If you have improvements you would like to make to take advantage of these savings, now is the time! Contact the professionals at Whipple Service Champions online or by calling (385) 446-2026 for expert help and guidance on products and installation.

Claiming your tax credits

After you have completed your installation of your qualified energy property with Whipple Service Champions, we will provide you with documentation on your new qualified energy efficient upgrades to claim your tax credits.

To find out just how much money you can save on your taxes through these credits, use this handy IRA savings estimation calculator.

Rebates available through the IRA

Tax credits aren’t the only incentive provided by the IRA to help homeowners do their part to cut both carbon pollution and inflation. Certain rebates will be available for upgraded appliances that make these changes even easier on your wallet.

High Efficiency Electric Home Rebate Act (HEEHRA)

For low- to moderate-income households that want to install new, efficient electric appliances, the High Efficiency Electric Home Rebate Act offers as much as $14,000 per year in rebates on such appliances and covers up to 100% of electrification projects. Take a look at the chart below to see what kinds of rebates will be available.

Most of the rebates for these appliances will be applied when you purchase the appliance, and will be available sometime in the second half of 2023, depending on your state. If you qualify for these rebates, be sure to contact Whipple Service Champions for advice in purchasing and installing any of these new appliances.

HOMES Rebate Program

The Home Owner Managing Energy Savings (HOMES) rebate program offers money back on whole-home energy upgrades that reduce your overall home energy use. It covers efficient appliances like heat pumps or the installation of better insulation or other weatherizing efforts.

The HOMES program offers households up $4000-$8000 if they cut energy usage by at least 35% The more energy you save, the bigger the rebate!

All households qualify for the HOMES rebate. However, low- to moderate-income homeowners qualify for double the rebate, as well as up to 80 percent of project costs.

When will rebates be available?

Most of the available rebates offered by the Inflation Reduction Act will be available starting near the end of 2023. The timing of these depends on your state of residence and on Department of Energy guidance, so be sure to check with Whipple Service Champions by reaching out online or calling (385) 446-2026 to see if rebates are available when you’re ready to purchase.

A Cleaner Future

The Inflation Reduction Act was created to help Americans curb the expenses created by over-use of fossil fuels, reduce pollution, and create cleaner energy resources for all. Americans in every part of the country can reduce their energy bills, save on taxes, and get cash back by investing in and installing clean, efficient appliances and electrical upgrades. We know that it’s a lot to take in. If you have questions about how these types of appliances and upgrades work, we at Whipple Service Champions are happy to answer any questions. Fill out our contact form or call (385) 446-2026 in to learn more information on how to take advantage of the $369 billion Inflation Reduction Act.

Read more the Inflation Reduction Act savings on heat pump and HVAC upgrades in Salt Lake City.
Read more about how the Inflation Reduction Act can save you money on electrical and plumbing upgrades in Salt Lake City.