If you plan on making energy-efficient upgrades to your Chatham home, you may be eligible for money-saving tax credits. To curb inflation and help homeowners go green, the government recently passed the Inflation Reduction Act of 2022. Learn more about the tax credits and incentives available through this program below.
The Inflation Reduction Act (IRA) was signed into law in August of 2022 with the intent to limit the effects of inflation while addressing environmental issues associated with climate change. The program provides federal tax credits and deductions that empower homeowners, builders, and property owners throughout the United States to make homes and buildings more energy-efficient. Qualified upgrades under the IRA help to reduce energy costs and decrease demand as the country transitions to cleaner energy sources.
As noted above, one of the primary purposes of the Inflation Reduction Act is to address climate change and reduce the effects of global warming. While the bill focuses significantly on encouraging businesses to prioritize clean energy and eco-friendly practices, the bill also provides incentives for residential property owners.
Homeowners can reduce their tax bill with rebates and tax credits for installing energy-efficient doors, windows, water heaters, furnaces, heating and cooling systems, and more. By making energy-efficient upgrades, homeowners can lower their utility costs and reduce their environmental footprint.
One of the most critical components of the IRA is the Energy Efficient Home Improvement Tax Credit (25C). This new tax credit is a revamped version of what was previously known as the Nonbusiness Energy Property Credit, which offered a 10% tax credit to homeowners who made eligible home improvements. As of January 1, 2023, homeowners can receive a 30% tax credit for qualified upgrades. Although the previous tax credit was offered as a one-time credit, homeowners can now claim tax credits under 25C each year.
With money-saving incentives, now is the perfect time to add energy-efficient upgrades to your New Jersey home — and Pipe Works Services, Inc. can help! As your local HVAC and home energy expert, we offer many products that qualify for tax credits under the Inflation Reduction Act. Whether you're interested in a ductless heating and cooling system or having a heat pump water heater installed, we have you covered.
To learn more about our services and savings available through the IRA or 25C tax credit, get in touch with our team. Contact us at 1-973-457-4627 or online to speak with our specialists or schedule a free estimate for our services. We proudly serve homeowners in Chatham, Madison, Summit, Short Hills, Union, Florham Park, Basking Ridge, Clifton, Somerset, Millburn, and cities throughout Northern NJ.
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