Inflation Reduction Act Tax Credits & Rebates

What the Inflation Reduction Act (IRA) Means for You – Tax Credits and Rebates

Is it time for you to upgrade your home’s HVAC system, water heater, and electrical box? You’re in luck! You can get huge savings on new equipment and installation costs through tax credits and rebates provided by the Inflation Reduction Act.


How Much Can I Save with Tax Credits?

25C Tax Credit (Covers 30% of Cost)
For Qualified Electrification Upgrades
Total Annual Credit$3,200
Heat Pump$2,000
Other Upgrades$1,200
Annual Credit For Heat Pumps and Heat Pump Water Heater$2,000
Heat Pump$2,000
Annual Credit for Other Upgrades$1,200
Air Conditioner$600
Electrical Panel$600
Energy Audit$150

The Inflation Reduction Act (IRA) was signed into law in August of 2022, to benefit homeowners who make energy-efficient home upgrades. The Inflation Reduction Act includes over $369 billion in the form of tax credits and rebates and allows homeowners who purchase heat pumps or other energy-efficient home appliances to save more than $14,000 in consumer rebates and tax incentives. These energy-efficient upgrades can save homeowners in Central Florida over $600 annually on their energy bills. While rebates will not be available until the end of 2023, tax credits are available now to all customers.

Contact Frank Gay Services or call (407) 279-3270 today to learn how to save money this year through rebates and tax incentives.

25C Energy Efficient Home Improvement Tax Credit

The Inflation Reduction Act has built-in tax credits for households making energy-efficient choices. The Energy Efficient Home Improvement Tax Credit included in the Inflation Reduction Act is an expansion of the existing 25C tax credit. It allows homeowners to deduct up to 30% of the total cost of certain home improvements, up to $3200 annually. Important: To be eligible for the tax credit, any upgrades you make must meet applicable Consortium For Energy Efficiency and Energy Star requirements.

The Central Florida home service professionals at Frank Gay Services can provide you with expert help and guidance when you are ready for your energy-efficient upgrades. Contact us online or call (407) 279-3270 to schedule an analysis of your home’s energy usage.

All Central Florida homeowners are eligible for the 25C tax credit. There are no income qualifications for tax credits. Anyone with adequate tax liability to offset can qualify.

Yes. 25C upgrades must meet the Consortium for Energy Efficiency’s highest non-advanced tier and Energy Star requirements. The home service professionals at Frank Gay Services can help you select the right upgrades to qualify for the 25C tax credit.

Our team at Frank Gay Services will take the headache and hard work away and provide you with all the proper documentation to easily claim your home upgrade tax credits when you file your taxes. However, we are not tax professionals and cannot provide tax or other financial advice.

Let Frank Gay Services help you get the most out of your tax credits. Contact us today or call (407) 279-3270 for assistance.

IRA Rebates Are Coming Soon!

High-Efficiency Electric Home Rebate (HEEHRA)

The High-Efficiency Electric Home Rebate program provides point-of-sale discounts to low- and middle-income homeowners, allowing them to save up to $14,000 on energy-efficient home upgrades. The program covers 100% of electrification costs for low-income households and 50% of costs for moderate-income households, including the cost of the equipment and labor for professional installation. Households that fall below 150% of the area median income are eligible for the HEEHRA program.

HEEHRA Rebate Levels
For Qualified Electrification Upgrades
Income Eligibility and % Costs Covered
Low Income: <80% Area Median Income (AMI)
% costs covered (including installation)
Moderate-Income: <80% Area Median Income (AMI)
% costs covered (including installation)
Overall Incentives
Max Consumer Rebate$14,000
Max Contractor Rebate$500
Rebates for Qualified Electrification Projects
Heat Pump HVAC$8,000
Heat Pump Water Heater$1,750
Electric Stove/Cooktop$840
Heat Pump Clothes Dryer$840
Breaker Box$4,000
Electric Wiring$2,500
insulation, air sealing, ventilation

Home Owners Managing Energy Savings Rebate Program (HOMES)

The Homeowner Managing Energy Savings (HOMES) rebate program was created to encourage families to cut back on their energy use and will reimburse Central Florida homeowners anywhere from $2000-$8000 for whole-house energy improvements. The HOMES rebate program applies to homeowners who cut their energy use by 20%-35% (or more). Low- and middle-income households can save $4000-$8000 or 80% of project costs. High-income households can save $2000-$4000 or 50% of project costs. The HOMES rebates are based on the performance of energy savings measured by a threshold of either 20% modeled savings (pre-upgrade) or 15% measured savings (post-upgrade). The more energy you save, the bigger the rebate. All Central Florida homeowners qualify for the HOMES rebate program.

Are Rebates Available Now?

The HEEHRA and HOMES rebate programs will start sometime at the end of 2023 or the beginning of 2024 through your State Energy Offices. The timing of these depends on state and federal Department of Energy guidance, so be sure to check with Frank Gay Services to see if rebates are available when you’re ready to purchase.

Tax Credits and Rebates—what’s the difference?

Tax credits are given back when you file your taxes. You can earn up to $3200 in tax credits with the 25C tax credit every year.

Rebates are off-the-top discounts on the purchase of qualifying appliances or equipment. Rebates will be available near the end of 2023 or the beginning of 2024. Contact Frank Gay Services to stay updated on the latest news on when rebates will be available in Central Florida.

How do I save on my home upgrades today?

Take advantage of the 25C Energy Efficient Home Improvement tax credit and ask our professionals at Frank Gay Services how you can maximize savings with qualified energy-efficient upgrades. The Frank Gay Services team is ready to help you every step of the way.

Fill out our contact form or call (407) 279-3270 to learn more information on how to take advantage of the $369 billion Inflation Reduction Act.

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