Understanding 2023 IRA Tax Credits for Homes in Meridian, MS
Upgrading your HVAC system saves you money on operating costs and maintains comfort in your Meridian, MS, home. The Internal Revenue Service (IRS) offers tax credits that offset the cost of a new system and other home renovations. Let’s explore some of the IRA tax credits available for Mississippi homeowners in 2023.
Inflation Reduction Act
The Inflation Reduction Act became law in 2022 and hopes to slow down or stop the progress of climate change. Through the end of 2032, you get a tax credit when you buy and install certain HVAC products. Even if you qualify for financing, you can still use the tax credit.
Qualifying Products
To use an IRS tax credit, you must buy a new appliance or product and pay for its installation. Qualifying items include heat pumps, air conditioners and furnaces. Be sure to confirm your product meets requirements such as SEER2 ratings or being an Energy Star appliance.
Tax Credit Amounts
The IRS offers a $600 tax credit for those who install new air conditioners and furnaces for a total of $1,200. When you install a heat pump, you get $2,000. The maximum amount is $3,200 total if you purchase and install a combination of products.
Credits Vs. Rebates
Rebates give you a different way to save money on an HVAC system. Many manufacturers offer rebates when you buy products and submit proof of purchase, but some dealers also offer instant rebates. The money you get back comes in the form of a check.
As a Mississippi resident, you may qualify for a rebate on a new furnace or air conditioner when you install it and a tax credit later. Talk with a local company to see what manufacturers offer rebates. Keep your receipts as you need proof of purchase to claim a credit under the Inflation Reduction Act.
Take advantage of the tax savings available for homeowners who install energy-efficient HVAC components and other green products. Reach out to Thomas HVAC Services to find the best systems to get tax credits and schedule a heat pump installation consultation in Meridian, MS.
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