Signed into law in August 2022, the Inflation Reduction Act (IRA) provides tax credits and rebates to encourage homeowners to replace older appliances with high-efficiency equipment that performs better at a lower operating cost.
What Tax Credits Can I Claim?
Ballard Natural Gas Service can help pinpoint areas in your home to save money and reduce your carbon footprint, allowing you to use the best tax credits and rebates.
For local homeowners, the IRA tax incentives fall under the Energy Efficient Home Improvement Credit (Section 25C). Projects must meet ENERGY STAR® standards to qualify.
Eligible projects installed between 2023 and 2032 quality for a 30 percent tax credit:
- Air Conditioners—Tax credit capped at $600
- Heat Pumps—Tax credit capped at $2,000
- Furnaces and Boilers—Tax credit capped at $600
- Electrical Panel Upgrade—Tax credit capped at $600
Consult with your tax professional to learn more about federal energy credits. Many of these credits are retroactive to projects installed in 2022.
Ballard Natural Gas Service can also inform you about Washington state tax credits and rebates available for your home.