The Inflation Reduction Act of 2022 provides several ways individuals, homeowners, tax-exempt organizations and businesses can receive tax credits and rebates by making qualifying energy-efficient upgrades. The Act also provides two rebate programs to states that apply for grants for home energy efficiency and home electrification projects. The Georgia Environmental Finance Authority (GEFA) has applied and been approved for these programs.
GEFA is finalizing the rebate programs. Beginning in 2025, Georgia residents can apply for rebates for qualifying home energy upgrades through these programs. In addition to these incentives, Georgia Power’s Home Energy Improvement Program offers rebates on qualifying energy-saving products for Douglas residents.
Energy-Efficient Home Improvement Credits
Under the Inflation Reduction Act, homeowners can receive federal tax credits of up to $3,200 each year through 2032 for installing clean energy equipment, making approved energy-efficient home upgrades and upgrading to heat pump technology. There are no lifetime limits. Homeowners can claim benefits each year. Most tax credits apply to principal residences in the U.S.
Upgrading to Heat Pump Technology
Homeowners can claim 30% of project costs up to $2,000 to install air-source heat pumps for heating and cooling. In Georgia, all ENERGY STAR-certified ducted heat pumps qualify for the rebate. Installing ductless mini-split heat pumps with specific energy efficiency ratings can also qualify. ENERGY STAR-certified heat pump water heaters qualify for the same credits. ENERGY STAR-certified geothermal heat pumps are eligible for a different tax credit that does not count against the annual limits.
Energy Efficiency Home Improvements
Homeowners can claim 30% of costs up to $1,200 for qualifying energy-efficient home improvements. Improvements include:
- Electrical panel upgrades
- Insulation
- Windows, doors and skylights
- Natural gas, oil and propane water heaters
- Central air conditioners
- Furnaces and boilers
- Home energy audits
Residential Clean Energy Upgrades
Residential clean energy equipment upgrades apply to existing and newly constructed homes. Products include geothermal heat pumps, small wind turbines, solar energy systems, fuel cells and battery storage technology. Solar system credits apply to both principal and second homes in the U.S.
You can get federal tax credits for qualifying electric, plug-in and fuel cell electric vehicles. The State of Georgia offers several grants and incentives for alternative fuel vehicles.
Rules apply to claim tax credits for each category. Details are available from ENERGY STAR, the Department of Energy and the Internal Revenue Service.
Home Efficiency Rebates
Home efficiency rebates are administered by the state of Georgia through GEFA. The program provides rebates for upgrading appliances and systems that reduce energy consumption. Amounts for a household range between $2,000 and $4,000 according to the amount of energy saved. Multifamily building retrofits can claim up to $400,000 for qualifying projects. Upgrades include installing ENERGY STAR-certified heating and cooling equipment and water heaters, weatherization and upgrading home appliances. Rebates cover a higher percentage of the costs for low- or moderate-income households.
Consumers can sign up for updates or contact GEFA to find out when the program begins and how to apply. You may be asked to work with a qualified contractor and have upgrades approved before you begin.
Home Electrification and Appliance Rebates
The Home Electrification and Appliance Rebates, also overseen by GEFA, are available to low- and moderate-income households. Rebates apply to approved purchases of qualifying products that lower energy usage, including heat pump HVAC systems, heat pump water heaters, insulation, air sealing, wiring and electrical panel upgrades. GEFA lists the maximum amount of rebates for each category.
Chancey Heating & Cooling of Douglas, GA provides new installations, repairs and maintenance of heating, ventilation and air conditioning systems for residences and businesses. We also offer indoor air quality solutions, duct cleaning and sheet metal fabrication.
As a Lennox Premier Dealer, we often recommend Lennox products because of their proven track record of durability and energy efficiency. In addition to Lennox products, we work on all brands of HVAC equipment. Our technicians undergo regular training to stay up to date with HVAC technology. As a family-owned business, we put customer satisfaction first, and we strive to develop long-term relationships with our customers.
If you are looking for heating and air conditioning equipment that qualifies for federal and state rebates and tax credits, we can help. We can recommend air-source and geothermal heat pumps, whole-home ventilation systems, ducted HVAC systems, ductless mini-splits and high-efficiency furnaces.
Upgrading to energy-efficient equipment can save money on taxes, reduce utility bills and improve comfort. We offer free estimates for new installations. Our repair and maintenance services for ACs and heating systems keep your HVAC units running efficiently.
For more information about our services or federal, state and local rebates and credits, contact Chancey Heating & Cooling today.
