If you’ve been thinking about investing in a geothermal heating and cooling system for your home, there has never been a better time. The US government is currently offering a geothermal tax credit for 30% of the cost of a geothermal unit. That means if you install a geothermal unit before the end of 2022, you can claim the credit when you file your taxes at the beginning of next year.
If you want to wait and install a unit in 2023, you can claim the credit in 2024 when you file taxes. In fact, the credit is good for an entire decade! But that doesn’t mean you should wait to invest in geothermal systems in Butler County. Keep reading to learn what you should know about the Inflation Reduction Act and how it can help you save money.
What to Know About the Inflation Reduction Act
The most important thing that homeowners want to know about the Inflation Reduction Act (IRA) is how they can save money, which is a great question! In addition to geothermal savings, there will be a 30% tax credit available for qualifying solar panel rooftop installations as well, as part of the IRA and an added long-lasting tax credit for home battery units with over 3 kilowatt-hours of storage capacity.
The IRA is estimated to be the most aggressive action yet taken on tackling the climate crisis, and it is expected to have a huge positive impact on our economy, creating clean energy jobs, making the tax code fairer, re-energizing manufacturing, and even lowering healthcare costs overall.
“The Inflation Reduction Act is the single largest investment in agricultural conservation in the country’s history” – Scott Faber, Environmental Working Group
Click the links below for answers to some of the most frequently asked questions about this update.
Upgrade Your Geothermal System Before the SEER2 Update
Starting January 1, 2023, there will be an update to the minimum efficiency standards for HVAC systems manufactured in the US called SEER2 (Seasonal Energy Efficiency Ratio). This change is being implemented by the US Department of Energy and is going to have a huge impact on the cost of new home comfort systems, including heat pump type systems.
The biggest impact of this change on US consumers is an increase in equipment costs. While some of this will be offset by the IRA, it’s still a great idea to have your geothermal installation done sooner rather than later.
We will still be permitted to sell the rest of our inventory of lower-efficiency HVAC systems beyond January 1st; however, this is when manufacturing will stop for these systems, and stock will be limited.
We Can Help!
HVAC systems are understandably one of the biggest investments you’ll ever make for your home. Even with tax rebates, the costs can seem restrictive. This is why we provide financing options. Please don’t hesitate to reach out to our team to learn more.
Contact Kennihan Plumbing & Heating, Inc. today to schedule an appointment with our professionals. We treat your home like it’s our grandma’s home.