2024 Tax Benefits for New HVAC Purchases
In 2024, acquiring a new heating, ventilation, and air conditioning (HVAC) system for your Oregon home does more than just increase your comfort and reduce utility bills—it also opens up opportunities for tax credits and extra savings for you!
Modern, efficient HVAC systems not only boost indoor air quality (IAQ) in your Portland residence but also potentially lower your carbon footprint and support a cleaner environment. If your current HVAC unit is aging, it is likely becoming less efficient, leading to higher expenses and a greater environmental impact compared to newer models.
Investing in a new system is ideal for many reasons, and now is a great time because the federal government is offering tax deductions to help cover the expense.
Sun Glow Home Services is here to assist you in identifying high-efficiency HVAC systems eligible for tax incentives, helping reduce the cost of new equipment. Our team prides itself on our commitment to superior customer service, which is why we are committed to providing you with the most efficient solutions and maximizing your savings as much as possible.
Our experts can guide you toward the most efficient HVAC options that qualify for financial incentives, whether you are considering a furnace upgrade or switching to an electric heat pump. Part of your investment can be offset against your federal taxes. Imagine what you could do with the savings from the upfront cost of your investment, coupled with savings on your monthly heating and cooling bills!
Federal Tax Credits
Under the Inflation Reduction Act (IRA) of 2022, tax credits are available for high-efficiency HVAC units through 2032. These credits allow for a 30 percent deduction of both purchase and installation costs, with specific caps:
- Air conditioners, furnaces, boilers, and water heaters are capped at $600.
- Air-source heat pumps and heat pump water heaters have a $2,000 cap.
- Up to $150 can be claimed for energy audits and $600 for electric panel upgrades.
- Home insulation, windows, and skylights can get you a maximum of $1,200 and $600, respectively.
Geothermal systems and solar panels are uncapped, but the 30 percent credit reduces to 26 percent in 2032 and 22 percent in 2033.
To qualify for these tax credits, equipment must meet specific standards.
For instance, gas furnaces must be ENERGY STAR® certified with a minimum annual fuel utilization efficiency (AFUE) rating of 97 percent or more, indicating high energy efficiency. Our experts can help you select a system that fits your Portland home and meets the criteria for tax incentives.
In addition to federal tax credits, be sure to speak with our experts to find out if you qualify for any additional local tax credits or rebates. We are here for you and are prepared to help you navigate the complexities of these incentives.
Consult With Us and Upgrade Your HVAC Today!
Thinking about upgrading your heating and cooling equipment in your Portland, OR, home? Reach out to Sun Glow Home Services. Contact us at 971-357-0650 or request our service online, and let us guide you in making a cost-effective, energy-efficient choice for your home.