If you’re looking to make your home more energy-efficient and save money, now is the perfect time. Thanks to the Inflation Reduction Act (IRA), homeowners can access substantial tax credits and rebates to offset the cost of energy-saving home improvements. But before diving into new appliances or insulation as efficiency upgrades in Pittsburgh, PA, the first step is to schedule a professional home energy audit.
Start With a Home Energy Audit
A home energy audit is the essential first step to identifying where your home is losing energy and what upgrades will offer the biggest return. During an audit, a certified professional inspects your home’s insulation, windows, HVAC systems, and air sealing, and uses tools like blower doors and infrared cameras to detect air leaks and inefficiencies.
Under the IRA, you can claim a tax credit of 30% of the cost of a home energy audit, up to $150. This small investment helps create a strategic, prioritized plan to reduce your energy use—and makes you eligible for even more credits on qualified improvements.
Energy Efficiency Improvements That Qualify for Tax Credits
Once you’ve completed your audit, you can make informed decisions on which upgrades to pursue. The IRA’s Energy Efficient Home Improvement Credit provides a 30% tax credit on various home upgrades, up to $1,200 per year, and up to $2,000 for heat pump-related upgrades. Here’s what qualifies:
- Insulation and Air Sealing: Upgrade your attic, walls, or floors with modern insulation to reduce heating and cooling loss. These improvements are eligible for the standard $1,200 cap.
- Windows and Doors: Replacing old, drafty windows or doors with ENERGY STAR® certified models also qualifies for a 30% tax credit—up to $600 for windows and $500 for doors annually.
- Heat Pumps: These highly efficient systems work for both heating and cooling. Replacing your old furnace or air conditioner with a qualified air-source heat pump may earn you up to $2,000 in tax credits.
- Electrical Panel Upgrades: If your system needs updating to support efficient appliances or electric vehicle (EV) charging, panel upgrades are also covered under the standard $1,200 credit cap.
- Water Heaters: Electric or heat pump water heaters that meet efficiency standards can qualify for up to $600 in tax credits.
Don’t Forget About Rebates
In addition to tax credits, the IRA also introduced upfront rebates, particularly helpful for low- to moderate-income households. These rebates cover up to 100% of upgrade costs for eligible households and apply to heat pumps, weatherization, and other efficiency projects. While rebates are administered at the state level and are still rolling out, homeowners can expect them to become widely available soon.
Take Action and Save
Taking advantage of the Inflation Reduction Act starts with knowledge and planning. Schedule your home energy audit, review your results, and make upgrades that qualify for credits and rebates. By doing so, you’ll reduce your energy bills, lower your carbon footprint, and get money back for doing it.
Ready to boost your home’s efficiency? Start with a professional energy audit from our team of experts and explore the full range of IRA savings waiting for you!
Call the friendly staff at Boehmer Heating & Cooling for exceptional customer service! Schedule AC or heat pump service in Pittsburgh, PA with our team today.