HVAC Tax Credits & Rebates in GeorgiaBack to Blog
Georgia homeowners looking to save money on their HVAC replacement needs will be happy to learn that plenty of tax incentives are available to make such projects more affordable and accessible to all families.
Learn all the rebates and tax credits available to Georgia families, how to apply for them, and why now may be the best time to consider HVAC replacement for your home.
Get expert HVAC for your home in Macon, GA, by calling Conditioned Air at (478) 742-8768 or contacting us online.
The Best Time To Replace Your HVAC System Is Now
In August 2022, the Biden administration signed the Inflation Reduction Act (IRA) into law to reduce greenhouse gas emissions by 40% by 2030. Since the act became law, several tax incentives and rebate programs have been made available to Georgia families, making now the best time to consider replacing your HVAC equipment.
Types of Tax Credits & Rebates Available
Under the IRA, Georgia now offers many different tax incentives and rebate programs, including:
Energy Efficient Home Improvement Credit
As of January 1, 2023, and ending on December 31, 2032, Georgia homeowners can claim up to 30% of the total costs for eligible home improvement purchases on their taxes thanks to the Energy Efficient Home Improvement Credit. Annual limits apply depending on the type of system you have installed:
Residential Clean Energy Credit
The Residential Clean Energy Credit offers up to 30% of the cost of qualified clean energy system installations, such as geothermal heat pumps, with no annual limit on the amount that can be claimed. Homeowners can even roll over their savings to the following tax year if the credit exceeds their tax liability.
Projects must be completed between January 1, 2023, through December 31, 2032, to be eligible for the 30% credit. The credit will decrease to 26% for projects completed in 2033 and then to 22% for installations made in 2034. Afterward, the credit expires.
High-Efficiency Electric Home Rebate Program
This rebate program is designed to help low- and moderate-income (LMI) households make energy-efficient home improvements. It offers up to $14,000 in point-of-sale rebates per household. While the program mainly targets electrical upgrades, families can receive up to $8,000 in available rebates for qualifying heat pump installations.
Under the program, LMI households are defined as:
- Low-income: Households making less than 80% of the area median income may receive up to 100% of the purchase cost for heat pump installations.
- Moderate-income: Households making between 80% to 150% of the area median income may receive up to 50% of the purchase cost for heat pumps.
Georgia received guidance from the U.S. Department of Energy in July 2023 about program establishment for the state. Consumers may be able to claim the rebate as early as the end of 2023.
How To Apply for HVAC Tax Credits & Rebates
To apply for the HVAC tax credits mentioned above, customers must file a request when they complete their tax return. You must ensure that you meet the eligibility criteria required for each program before submitting. If you are unsure if you satisfy the eligibility requirements, consult with your tax professional.
Benefits of HVAC Replacement
Replacing your HVAC system can offer several benefits, including:
- Improved Energy Efficiency: Newer HVAC systems are typically more energy-efficient than older ones. They often come with advanced technology, such as variable-speed motors and smart thermostats, which can help regulate temperature more precisely and reduce energy consumption. This can lead to lower utility bills and decreased energy waste.
- Enhanced Indoor Comfort: A new HVAC system can provide more consistent heating and cooling throughout your home. It can distribute air more evenly, eliminate hot or cold spots, and maintain a more comfortable indoor environment. Improved comfort can enhance your overall quality of life and make your home a more pleasant place to live.
- Increased System Reliability: Older HVAC systems are more prone to breakdowns and require frequent repairs as they age. You can enjoy greater reliability and reduced maintenance costs by replacing your old system with a new one. New HVAC systems often come with warranties, providing peace of mind and protection against unexpected repair expenses for years.
In addition to these benefits, HVAC replacement can lead to improved indoor air quality, reduced environmental impact due to lower energy consumption, and increased property value if you plan to sell your home.
Replace Your HVAC System With Conditioned Air
Ready to take advantage of these available HVAC tax credits and reap the benefits of an all-new heating and cooling system? Trust Conditioned Air. We have 80 years of experience, and our NATE-certified technicians are available 24/7.
Contact Conditioned Air, Inc. at (478) 742-8768 to request HVAC replacement services in Georgia today!