Tax Day 2023 and Your HVAC System

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Tax forms and next to the calendar with a date mark when you need to file a return.

The deadline for this year to file your federal tax returns is Tuesday, April 18. As of August 12, 2022, when the Inflation Reduction Act was signed into law, some federal tax incentives became retroactively available for 2022. Let’s take a look at incentives available for 2022 and the wide range of incentives that went into effect beginning January 1, 2023.

Federal Tax Incentives Retroactively Available for 2022

The Energy Efficiency Home Improvement Credit, formerly called the Nonbusiness Energy Property Credit, is a federal tax credit available to consumers for the 2022 tax year.

  •  There’s a lifetime limit of $500 for the credit. Meaning credits taken in prior years count towards the limit.
  • Individual credit limits are $50 for air circulating fans, $150 for some furnaces and boilers, and $300 for certain water heaters, heat pumps, and air conditioning systems that meet energy efficiency requirements.

Federal Tax Incentives for 2023

The Inflation Reduction Act of 2022 includes a range of federal tax incentives.

The federal tax credit allows homeowners to deduct up to 30% of home improvement upgrades from their taxes.

  • Homeowners can claim up to $150 of a home energy audit at their primary residence. A home energy audit is defined by as an inspection and written report that identifies the most significant and cost-effective energy efficiency improvements to your residence. Bruce’s can do this energy audit for your home.
  • $250 for an exterior door; up to $500 total for all exterior doors.
  • $600 for central air conditioners, natural gas, propane, or oil hot water heaters, air source heat pumps, natural gas, propane, or oil furnaces and fans, non-solar water heaters, and advanced main air circulating fans.
  • 10% tax credit of the cost up to $500 not including installation for metal and asphalt roofs.
  • 10% tax credit of the cost up to $500 not including installation for ENERGYSTAR windows, doors, and skylights.
  • 10% tax credit of the cost up to $500 not including installation for adding adequate insulation. This tax credit also applies to weather stripping, spray foam in a can for air sealing, caulk for air sealing, and a house wrap. These are some of the most cost-effective home improvements that you can make.

Call Bruce’s

When you need advice on how to best utilize these tax incentives, repairing, or replacing your HVAC equipment, our skilled HVAC professionals can diagnose, repair, and recommend new air conditioning, heating, and furnace equipment. Call us today at 480-968-5652 to schedule your appointment. We’re here to help 24/7/365.

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