Are you thinking about upgrading your home’s heating and cooling system, completing electrical upgrades, or replacing your water heater? Good news! In 2023, you may be eligible for special rebates and incentives to help you save money on these energy-saving improvements, thanks to the Inflation Reduction Act. In this guide, Kotz Heating, Cooling & Plumbing will break down everything you need to know about these rebates in simple, easy-to-understand language.
What is the Inflation Reduction Act?
The Inflation Reduction Act is a law passed by the federal government to help people save money during times when prices for things like groceries, gas, and household expenses are going up. One way it does this is by offering special benefits to encourage homeowners to make energy-efficient upgrades to their homes.
Individual states may also piggy-back their own rebates that can be utilized in conjunction with the federal rebates.
As always, Kotz recommends consulting your individual tax preparer for full details and individual qualification.
Heating and Cooling System Rebates
Heating and cooling systems, also known as HVAC systems, are a big part of our homes. They help keep us warm in the winter and cool in the summer. But older systems can be less efficient, meaning they use more energy and cost more to run. The Inflation Reduction Act wants to help you save money by offering rebates when you upgrade to a more energy-efficient HVAC system.
These rebates can make it more affordable to replace your old system with a new one that works better and uses less energy. Not only will this save you money on your energy bills, but it’s also better for the environment because it reduces the amount of energy we need to produce. You’ll likely be more comfortable indoors, too!
Some of the specific rebates for which you may be eligible are: Heat pumps, either ducted or ductless (mini-splits); air source heat pumps; central A/C’s; furnaces and boilers.
Water Heater Rebates
Certain water heaters are also covered in the rebates, such as natural gas and heat pump water heaters. Just like HVAC systems, older water heaters can be less efficient and use more energy than newer models.
Under the Inflation Reduction Act, you can get a newer, more efficient water heater that heats your water better while using less energy. This not only saves you money but also reduces your carbon footprint.
Home Energy Audit Rebates & More
If you’ve wondered just how energy efficient your Waterford, Michigan area home is, now is the perfect time. You can recoup up to 30% of the cost up to $150 with 2023 rebate.
Other cool rebates that may be available to you are smart thermostats that enable you to manage your indoor environment from your electronic devices and use scheduling for more consistent temperature settings.
There are also many Consumers Energy and DTE rebates available to residents in the Waterford area. Consult Kotz for more information.
How to Get the Rebates
Getting these rebates is easier than you might think. Here are the steps you can follow:
a. Research and Choose an Energy-Efficient System: First, you need to decide which heating and cooling system, or water heater is right for your home. Look for models that are labeled as “energy-efficient” or “ENERGY STAR certified.” These are the ones that will help you save the most money on your energy bills.
b. Choose a Professional: It’s important to consult a professional home comfort provider like Kotz Heating, Cooling & Plumbing to help you choose the right system and install it properly. A trained Comfort Specialist can guide you through the process and make sure everything is done safely and efficiently.
c. Keep All Your Receipts: When you purchase and install your new HVAC system or water heater, make sure to keep all your receipts. You’ll need them to prove that you’ve made these energy-saving improvements.
d. File Your Taxes: When it’s time to file your taxes, you can claim the rebates as a special tax credit. A tax credit is like a discount on your taxes, which means you’ll owe less or even get money back. It’s a great way to save even more. Follow up with a trained tax consultant for current rebate and filing information.
Now, let’s talk about the money-saving benefits of these rebates:
a. Lower Energy Bills: Upgrading to an energy-efficient HVAC system or water heater can significantly lower your monthly energy bills. Since these systems use less energy, you’ll see the savings on your energy bill every month.
b. Tax Credits: The rebates offered through the Inflation Reduction Act are like getting a discount on your taxes. When you claim these rebates as tax credits, you can reduce the amount of money you owe in taxes or even get a refund.
c. Environmental Benefits: Energy-efficient systems not only save you money but also help the environment. By using less energy, you’re reducing your carbon footprint and contributing to a healthier planet.
d. Comfort and Peace of Mind: Newer heating and cooling systems and water heaters tend to be more reliable. You won’t have to worry about breakdowns or costly repairs as often, which can give you peace of mind and make your home more comfortable.
Signing up for a Kotz Heating, Cooling & Plumbing Red Carpet Maintenance Program assures your HVAC and plumbing equipment is always in the best condition and operating efficiently.
Take advantage of the Inflation Reduction Act 2023 rebates on HVAC systems to save money on heating and cooling and water heater upgrades. By choosing energy-efficient options and following the simple steps to claim your rebates, you can enjoy lower energy bills, tax credits, and a more comfortable home.
Contact Kotz Heating, Cooling & Plumbing today to learn more and to schedule an appointment with one of our highly trained Comfort Specialists or technicians.
*Must advise tax consultants for full details and qualifications.