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To help reduce inflation, decrease carbon emissions, and more, the U.S. Government has passed the Inflation Reduction Act (IRA), which includes several tax credits for installing ENERGY STAR® certified home heating and cooling products. The IRA consists of rebates and tax credits for HVAC.

There are two rebate programs available. Rebates are administered at the state level and favor lower-income households. Federally funded rebates cannot be combined and are intended for immediate, point-of-sale benefit.

There are four tax credits available. Tax credits are federal income tax credits available to anyone with taxable income. Tax credits can be combined, and rebates can be filed for
the following calendar/tax year.

• Tax Section 25C: Nonbusiness Energy Property Credit
Provides a tax credit to homeowners equal to 30% of installation costs for the highest efficiency tier products, up to a maximum of $600 for qualified air conditioners and furnaces and a maximum of $2,000 for qualified heat pumps.

• Tax section 25D: Residential Energy Efficient Property
Provides a tax credit to homeowners equal to 30% of installation costs for ENERGY STAR® geothermal heat pumps until 2032. That percentage drops to 26% in 2033 and 22% in 2034.

• Tax Section 45L: New Energy Efficient Home Credit
Provides tax credits to builders for meeting specific energy-saving criteria. The tax credits for ENERGY STAR 3.1 certified housing are $2,500 for single-family homes and $500 for multi-family units. To meet the Department of Energy’s Zero Energy Ready requirements, the tax credit increases to $5,000 for single-family and $1,000 for multi-family residences. If prevailing wage requirements are met on multi-family construction, those credits increase to $2,500 and $5,000

• Tax Section 179D: Commercial Buildings Energy-Efficiency Tax Deduction
Provides a tax deduction for building owners to claim for installing qualifying systems in buildings.
Up to $14,000 maximum for all.

• High-Efficiency Electric Home Rebate Program
Provides income-depending rebates to low to moderate-income (LMI) homeowners, including:
▪ Up to $8,000 for all-electric heat pumps
▪ Up to $4,000 for electrical load service center
▪ Up to $2,500 for electric wiring

• HOMES Rebate
Provides rebates for energy efficiency upgrades that improve a single-family homes or multi-family building’s overall energy performance.

Research the potential tax credits available, the efficiency requirements to earn the credit and the products that meet those criteria. Then, communicate those potential incentives in every sales presentation.

No.

The Consortium for Energy Efficiency (CEE) is an award-winning non-profit comprised of U.S. and Canadian energy efficiency administrators working together to accelerate the development and availability of energy-efficient products and services. CEE harmonizes program approaches in North America by supporting the production and market adoption of energy-efficient and connected equipment, installation and maintenance guidance, and facilitating program opportunities for each unique customer.

The CEE equipment specifications for air conditioners, heat pumps and furnaces can be found at the following links. Currently, the direction is that the IRS will require eligibility for 25C to adhere to the highest tier below the Advanced tier for each product. It is still unclear whether the IRS will include regional distinctions, North versus South.

• https://cee1.force.com/s/resources?id=a0V2R00000sUQbyUAG
• https://cee1.force.com/s/resources?id=a0V2R00000sUQcXUAW

The highest tier refers to the tier below the “Advanced Tier” with “Tier 1” being the lowest tier if there are multiple tiers listed.

No.

Only M1-rated equipment is applicable.

Low-to-Moderate Income (LMI) based on the area median income (AMI).

LMI is determined at the various levels (state, city, county level). Please refer to your local municipal office for information about your area.

LMI is determined at various levels (state, city, county level). Please refer to your local municipal office for information about your area.

Please refer to the TM Webinar Deck for a breakdown of the income levels required for rebate qualification.

The performance requirements for Energy Star and cold climate heat pumps can be found here.

Our understanding is that if both units meet the criteria, both items can be claimed. Please consult with your tax professional for more information.

25C does not have a lifetime cap, but the program expires in 2032.

We are not aware of the documentation that will be required for filing. Please consult your tax professional for more information.

25C is a federal tax credit. The rebate programs, though funded at the Federal level, are administered at the state level, and are funded separately from the IRA in the amount of $4.3 billion for both rebates.

There is no lifetime cap, but there is an annual cap of $1,200 for qualifying products and a separate annual cap of $2,000 for heat pumps. If combining a heat pump with other qualifying products, a homeowner could receive up to $3,200. Please consult your tax professional for more information.

The IRS intends for a qualifying system. If the IRS requires an AHRI certification number, then a heat pump installed would have to be installed on a system combination that meets the requirements. However, we do not know what the IRS will require upon filing.

AHRI has not updated their site to match the 2023 tax requirements or the Energy Star 6.1 requirements.

All of the requirements for 2023 installations reference M1 ratings. There currently isn’t any direction regarding M-rated equipment.

Regardless of the number of systems, the taxpayer is limited by the annual limit. Replacement of one system would likely meet the annual limit so to maximize the tax benefit, they should subsequent systems in later years.

Federal rebates cannot be combined with any other federally funded rebate program included in the IRA. We are unaware of any restrictions for other non-IRA programs.

We do not know this information at this time.

We do not know this information at this time; each state will determine this process.

We do not know this information at this time; each state will determine this process.

No information on this is available at this time. This will be decided at state level.

2022 installations that qualified based on the 2022 criteria can be filed for tax credit in the 2023 tax year. Qualified installations occurring in 2023 need to meet the 2023 criteria and would be included in the household’s 2024 tax filings. Please consult your tax professional for more information.

Please consult your tax professional for more information regarding filing separate claims on multiple systems/homes owned by the consumer.

Talking Points

Dealers should renew efforts in selling higher-efficiency systems by researching the potential tax credits available and the products that meet the efficiency requirements to earn the credit.
Dealers should then communicate potential incentives in every sales presentation and, at the same time, consider reaching out to customers who installed qualifying systems between January 1, 2022, and December 31, 2022, and let them know they may qualify for the credit as well.

Furnace Service, Heater Installation, Furnace Replacement, Heating Repair & Heating Service Tuscaloosa, AL, Northport, AL, Samantha, AL & Cottondale, AL

Furnace Repair in Tuscaloosa, AL | Furnace Replacement Northport, AL | Heater Installation Samantha, AL

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Quality maintenance, repairs and installations for your air conditioning system needs.

 

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We can suggest humidifiers, air purifiers, duct cleaning, and much more.

 

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Quality repair, service, and installations for all your commercial needs.

 

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Quality repair, service, and installations for Ductless HVAC.

From our customers
Testimonials and Reviews

Excellent professional service! Caleb and his team of employees completed our home service in a matter of hours not days. Thanks again Kendrick and Dallas for your help and arriving early. The rest of the team was polite and respectful. I highly recommend them.

V C

Great customer service and excellent technicians! Had a service call and had someone out quick and diagnosed problem quickly. Then was able to give me options to get me cooling again!! Definitely would recommend them!

Gabriel R

Brandon Walker and the other men exhibited professionalism and expertise during the instillation process. They were extremely polite and considerate of my comfort and well being. Their actions are a positive asset for the company. If I ran a business, I would employ each of them and make sure they stayed. Thank you so much.

Mary G

Michael was able to come a little earlier than my expected appointment. He was courteous & respectful and did a great job. I have been impressed by all of the Turner & Schoel staff I have ever encountered.

Lea Y

Turner and Schoel installed a new heating and cooling unit at our home and did a great job. They were professional and courteous and made sure we knew how to operate the thermostat before leaving. They called a few days later to see if all was working well and to make sure we were satisfied with their work. I would highly recommend them.

Jane T

Having sold my hvac company I recognize quality workmanship and excellent technicians. Turner and Schoel met my expectations. Glad I used them to replace my equipment. Will use them for future service and repair.

Chuck T

I love this company. I have used them three times for three different repairs and am thoroughly satisfied with their work, honesty, and transparency. It’s so nice to have a business in our community that is still honest in this dishonest world in which we live. Great job Turner and Schoel!! You are definitely my go to!

Jeff K

I am thankful for my experience with Turner & Schoel Inc. They went above all expectations to help get my heat going at a price I could afford and very timely. The parts I needed were available on the truck the same day and the technician was polite and professional. The generosity and help the owner showed my family is appreciated and beyond compare.

Sabrina N

I was amazed at how quick Brandon found a solution and helped me. I am a cancer patient and he made sure things were running smoothly and I did not have to worry. He was courteous and definitely instilled a trust in his company! Thanks Turner and Schoel!

Anita N

All of Turner & Schoel’s personnel are very knowledgeable and professional. They responded very quickly to our needs and were very courteous. Great company!

Lester B
Expert Service from a Trusted Team

Call us at (205) 409-3255 for swift response, no matter the time of day or night. Reach out by way of our online contact form for easy and convenient scheduling. Our goal is hassle-free and satisfying completion of every job. Fully licensed and insured, our team of NATE-certified technicians meet the rigorous requirements of a Carrier Factory Authorized Dealer. By consistently going above and beyond, Turner & Schoel is a multi-recipient of the Carrier President’s Award.

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