Save on Heating and Cooling With the Inflation Reduction Act
This time of year, many Pennsylvania homeowners ask themselves, “Is it time for a new air conditioner (AC) or can my current cooling system make it through another summer?”
A replacement may be best if your AC is 10 years or older—you’ll save as much as 50 percent on cooling costs, according to the U.S. Department of Energy (DOE). But the rising cost of heating, ventilation, and air conditioning (HVAC) equipment makes many families reluctant to invest in a new system.
That’s where the Inflation Reduction Act (IRA) of 2022 comes in handy. Through its tax credits, you can save significantly on the installation costs of high-efficiency AC units, heat pumps, furnaces, boilers, and more.
Want to learn more about qualifying models? Talk with an HL Bowman representative today in York.
What Tax Credits Can I Use Towards a New HVAC System?
Here’s a look at some of the federal incentives now available through the IRA:
Extension of 25C
The IRA extends and expands the 25C tax credit. Through 2032, you can receive a 30 percent credit toward installing new HVAC equipment that meets the Consortium for Energy Efficiency (CEE)’s highest tier.
Qualifying air conditioners, gas furnaces, and boilers can receive a maximum credit of $600 apiece. Qualifying heat pumps can receive a maximum credit of $2,000.
Extension of 25D
The IRA also extends and expands this tax credit. You can receive a 30 percent uncapped tax credit through 2032 for installing a geothermal heat pump.
What Are the Signs That I Need a New AC Unit?
It’s best to do a cost-benefit analysis. Sometimes, constant and high energy costs can be more expensive in the long run than replacing your AC unit. Besides age (10 years or more), here are a few signs it’s time to replace your current cooling system:
- High utility bills
Are you paying more than usual on your electrical bill in York? This could signify that your AC unit is giving out. Wear-and-tear damage causes the internal components to run slower, using twice as much energy to give you the same amount of cool air.
- Frequent need for repairs
Occasional repairs aren’t out of the ordinary. However, if your AC unit is constantly breaking down, replacing it might make more sense.
- Poor humidity control
Cooling involves removing heat and humidity from the air and expelling it via the outdoor compressor and condensate drain. In addition to cooling, this balances your humidity, contributing to healthy indoor air quality (IAQ). However, as the components age, they become worse at balancing humidity.
- Hot spots or reduced cooling capacity
Do certain areas of your home feel warm? Your AC may be on its last legs, struggling to keep your whole home cool. Alternatively, patchy cooling can be a sign of leaky air ducts. Be sure to have your HL Bowman professional run an airflow test to determine what’s happening.