The Inflation Reduction Act (IRA) Has Tax Credits and Rebates for Miami Homeowners
Is it time for you to upgrade your home’s HVAC system, water heater, and electrical box? You’re in luck! You can get huge savings on new equipment and installation costs through tax credits and rebates provided by the Inflation Reduction Act.
How much can I save with tax credits?
How Much Can I Save with Tax Credits?
| 25C Tax Credit (Covers 30% of Cost) For Qualified Electrification Upgrades | |
| Total Annual Credit | $3,200 |
| Heat Pump | $2,000 |
| Other Upgrades | $1,200 |
| Annual Credit For Heat Pumps and Heat Pump Water Heater | $2,000 |
| Heat Pump | $2,000 |
| Annual Credit for Other Upgrades | $1,200 |
| Air Conditioner | $600 |
| Furnace | $600 |
| Electrical Panel | $600 |
| Windows | $600 |
| Doors | $500 |
| Insulation | $1,200 |
| Energy Audit | $150 |
What is the Inflation Reduction Act?
The Inflation Reduction Act (IRA) was signed into law in August of 2022, to benefit homeowners who make energy-efficient home upgrades. The Inflation Reduction Act includes over $369 billion in the form of tax credits and rebates and allows homeowners who purchase heat pumps or other energy-efficient home appliances to save more than $14,000 in consumer rebates and tax incentives. These energy-efficient upgrades can save homeowners in the Miami area over $600 annually on their energy bills. While rebates will not be available until the end of 2023, tax credits are available now to all customers.
Contact Direct Heating & Cooling, LLC or call 786-875-3097 today to learn how to save money this year through rebates and tax incentives.
25C Energy Efficient Home Improvement Tax Credit
We all love saving money on our taxes and the Inflation Reduction Act has built-in credits for households making energy-efficient choices. The Inflation Reduction Act has built-in credits for households making energy-efficient upgrades. The Energy Efficient Home Improvement Tax Credit—an expansion of the existing 25C tax credit—allows homeowners to deduct up to 30% of the total cost of certain home improvements, up to $3200 each year. NOTE: Home upgrades must meet applicable Consortium For Energy Efficiency and Energy Star requirements to be eligible for the 25C tax credit.The Miami home service experts at Direct Heating & Cooling, LLC can provide you with help and guidance when you are ready for your energy-efficient upgrades. Contact us online or call 786-875-3097 to schedule your free home energy analysis today.
Do I qualify for the 25C Energy Efficient Home Improvement Tax Credit?
Yes, everyone is eligible for the 25C tax credit. There are no income qualifications; anyone with adequate tax liability to offset can qualify.
Does 25C have efficiency requirements?
Yes, 25C upgrades must meet the Consortium for Energy Efficiency’s highest non-advanced tier and Energy Star requirements. The professionals at Direct Heating & Cooling, LLC can help you select the right upgrades to qualify for the 25C tax credit.
How do I claim my tax credits?
Direct Heating & Cooling, LLC will provide you with all the proper documentation to easily claim your home upgrade tax credits when you file your taxes. NOTE: We are not tax professionals and cannot offer filing or other financial advice.
Let Direct Heating & Cooling, LLC help you get the most out of your tax credits. Contact us today or call 786-875-3097 for assistance.
Get Ready for Rebates
High-Efficiency Electric Home Rebate (HEEHRA)
The High-Efficiency Electric Home Rebate program was designed to provide point-of-sale immediate discounts to low- and middle-income homeowners allowing them to save up to $14,000 on energy-efficient upgrades. The program covers 100% of electrification costs for low-income households and 50% of costs for moderate-income households; this includes the cost of the equipment and labor for professional installation. Qualification for this rebate program requires households to fall below 150% of the area median income.
| HEEHRA Rebate Levels For Qualified Electrification Upgrades | |
| Income Eligibility and % Costs Covered | |
| Low Income: <80% Area Median Income (AMI) % costs covered (including installation) | 100% |
| Moderate-Income: <80% Area Median Income (AMI) % costs covered (including installation) | 50% |
| Overall Incentives | |
| Max Consumer Rebate | $14,000 |
| Max Contractor Rebate | $500 |
| Rebates for Qualified Electrification Projects | |
| Heat Pump HVAC | $8,000 |
| Heat Pump Water Heater | $1,750 |
| Electric Stove/Cooktop | $840 |
| Heat Pump Clothes Dryer | $840 |
| Breaker Box | $4,000 |
| Electric Wiring | $2,500 |
| Weatherization insulation, air sealing, ventilation | $1,600 |
Whole Home Energy Reduction Rebate Program (HOMES)
The Homeowner Managing Energy Savings (HOMES) rebate program was created to encourage families to cut back on their energy use and will reimburse Miami homeowners anywhere from $2000-$8000 for whole-house energy improvements. The HOMES rebate program applies to homeowners who cut their energy use by 20%-35% (or more). Low- and middle-income households can save $4000-$8000 or 80% of project costs. High-income households can save $2000-$4000 or 50% of project costs. The HOMES rebates are based on the performance of energy savings measured by a threshold of either 20% modeled savings (pre-upgrade) or 15% measured savings (post-upgrade). The more energy you save, the bigger the rebate. All Miami homeowners qualify for the HOMES rebate program.
Are rebates available now?
The HEEHRA and HOMES rebate programs will start sometime at the end of 2023 or the beginning of 2024 through your State Energy Offices, depending on the Department of Energy guidance. Be sure to check with Direct Heating & Cooling, LLC to see if rebates are available when you’re ready to purchase.
Tax Credits and Rebates—what’s the difference?
A tax credit is money that will be given back to customers when they file their taxes. You can earn up to $3200 in tax credits with the 25C tax credit every year with the Inflation Reduction Act.
Rebates are off-the-top discounts at the point of sale and provide customers with upfront savings. Rebates will not be available until the end of 2023 or the beginning of 2024. Contact Direct Heating & Cooling, LLC to stay updated on the latest news about when rebates will be available in Miami.
How do I save on my home upgrades today?
Take advantage of the 25C Energy Efficient Home Improvement tax credit and ask our professionals at Direct Heating & Cooling, LLC how you can maximize savings with qualified energy-efficient upgrades. We’re ready to help you every step of the way.
