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Save with the Inflation Reduction Act and the 25C Tax Credit

You may have heard about the Inflation Reduction Act (IRA) which was passed to reduce the effects of US carbon pollution. The IRA will benefit Central Florida homeowners who make energy-efficient upgrades in the form of tax credits and rebates on new HVAC, electrical, and plumbing items. You can save up to $3200 per year on your taxes and lower your energy bills in the process!

The 25C Energy Efficient Home Improvement Tax Credit

Homeowners who make energy-efficient upgrades like heat pumps, energy efficient doors and windows, and heat pump water heaters will be eligible for the tax credit included in the Inflation Reduction Act. The professionals at Frank Gay Services can provide you with all the necessary information about appliance and installation options for any of these energy-efficient upgrades. Give us a call at (407) 279-3270 when you’re ready to upgrade.

An extension of the existing 25C tax credit, the Energy Efficient Home Improvement Tax Credit allows homeowners to deduct up to 30% of the cost of certain home improvements, capping at $3,200 per year. As you might imagine, there are certain requirements for new appliance installations and/or upgrades to you home that must be met in order to qualify for the tax credit. You can see full details about how the Energy Efficient Home Improvement Tax Credit works here.

If you are thinking of making energy-saving changes to your home this year, it’s worth exploring the potential tax benefits that come with the IRA. The experts at Frank Gay Services can help determine which energy-efficient upgrades are right for your home and qualify for the tax credit. Call us at (407) 279-3270. NOTE: Frank Gay Services cannot offer financial or tax advice.

The chart below details which energy efficient appliances and upgrades qualify for tax credit.

Certain improvements must also meet applicable Consortium for Energy Efficiency and Energy Star requirements to be eligible for factoring into your tax credit amount.

IMPORTANT NOTE: The 25C tax credits are not up-front savings; they are factored into your tax credit amount when it’s time to file. Frank Gay Services will provide the documentation you need to claim the tax credits when the time comes, but we cannot provide tax filing or financial advice. Please contact an accountant or tax professional if you need help when filing.

25C tax credit eligibility

All Central Florida-area homeowners are eligible for the Energy Efficient Home Improvement Tax Credit. These tax credits can be applied to any new qualifying equipment installed or any upgrades made during the 2023 calendar year.

Keep in mind that there is an annual cap of $1200 per household per year (not including heat pumps, which cap at $2000), and a total cap of $3200. If you’ve been considering making upgrades or improvements to improve your home’s energy efficiency or to save on your energy bills, now’s a great time! Contact the service professionals at Frank Gay Services at (407) 279-3270 for help and guidance.

The 25C tax credit resets annually

The Energy Efficient Home Improvement 25C tax credit resets each tax year, so you can use these generous benefits year after year for additional qualifying home improvement projects through 2032. It’s a good way to spread out the work and still save money.

Claiming the 25C tax credit

Frank Gay Services will provide you with documentation about your qualified upgrades once your qualified energy efficient home improvements have been completed and installed. You will need these documents to claim your tax credits. Call (407) 279-3270 today to get the process started. If you need help filing, please contact a tax professional—Frank Gay Services cannot offer financial or tax advice.

Estimate your savings

Want to see how much you can save on your taxes with the 25C credit? Use this IRA savings estimation calculator.

Cleaner air, cleaner future

The Inflation Reduction Act was passed to help Americans reduce the environmental impact of our reliance on fossil fuels, to lower our energy bills, and to enable the adoption of cleaner and more efficient energy sources. Central Florida-area homeowners can take advantage of tax credits and cash back rebate incentives to further reduce their expenses by investing in clean and energy efficient appliances and electrical upgrades.

Contributing to a cleaner and more sustainable future also means saving on energy bills; it’s a win for everyone! Consider investing in energy-efficient upgrades and appliances this year. Don’t hesitate to reach out to us at Frank Gay Services at (407) 279-3270 and learn about how we can help you take advantage of these exciting tax deduction opportunities.

Get started today and start saving!

It can be overwhelming to even think about starting the process of upgrading your home’s appliances. The trusted professionals at Frank Gay Services are here to help you and to answer any questions you might have about the Inflation Reduction Act. From the benefits of energy-efficient upgrades with heat pumps to electrical upgrades to energy efficient plumbing, we are here for you. Contact us at (407) 279-3270 today and make an appointment.

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