What is a Federal Energy Tax Credit?

The Energy Tax Credit is part of the Inflation Reduction Act, a bill signed by President Joe Biden in August 2022. This act does many things, one of which is to offer significant tax credits to people who install energy-efficient HVAC systems. The largest credits are reserved for people who are buying multi-zone mini-split systems, but there are other ways to take advantage of it, too.

The tax credit basically allows you to subtract a certain amount from what you owe in taxes, to help offset the cost of installing a new system. It’s not the same as a rebate, because you don’t get a check for the offsetting amount. However, you’ll owe less in taxes if you take advantage of this program

How to Get the Federal Energy Savings Tax Credit

In order to take advantage of the Federal Energy Savings Tax Credit, you have to install a new HVAC system in your home and make sure it qualifies with the government’s standards. These systems are all designed to save energy, so they are required to have certain SEER ratings, etc.

Once you install the new system, you’ll need paperwork to show that you: A) got a new system, and B) got a system that qualifies. We will get you all of this paperwork. Then, you simply let your tax professional know that you qualify, send them the paperwork, and they will take care of the rest!

What Tax Credits are Available?

You can also get tax credits for making a few other energy-saving installations. Putting in solar panels; adding windows, skylights, and doors designed to save energy; and adding certain types of insulation to your home all qualify.

We Are Here To Help With Your Weatherford HVAC Systems

If you want to take advantage of the Federal Energy Savings Tax Credit this year, call us at Lightfoot Mechanical today. We’ll help you get an amazing new HVAC system, install it for you, and get you the paperwork you need.

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