On January 1st, 2023, new federal tax credits were announced in conjunction with the Inflation Reduction Act. These tax credits cover home comfort equipment such as new air conditioners and heat pumps. These new tax credits will replace the Non-Business Energy Property Tax Credits.
To calculate how much you may potentially save, click here for more information and for a calculator that factors in you’re area, household size, and income to determine what rebates you may qualify for. The maximum savings is $8,000 (which we take off the price) along with a maximum 30% tax credit, capped at $3,200/year (or $2,000 for heat pumps and $1,200 for AC/Furnace/Boilers).
Taxable Annual Limits: 30% of the project cost (up to a $3,200) annual maximum for all energy efficiency improvements claimed under this credit. As this pertains to LM Wilson and the services we provide, this breaks down to:
Date Requirement: Equipment must be purchased and installed January 1, 2023–December 31, 2032.
Property Requirements: Equipment must be installed in an existing home and your principal residence (the place you occupy most of the time). New construction and rentals do not apply. The principal residence must be in the United States and may be a house, houseboat, mobile home, cooperative apartment, condominium, or a manufactured home to qualify.