Arkansas HVACR NewsMagazine September 2024

HVACR NewsMagazine September 2024

Rebate Programs & Incentives

• $2,000 per year for qualified heat pumps, biomass stoves or biomass boilers The credit has no lifetime dollar limit. You can claim the maximum annual credit every year that you make eligible improvements until 2033. The credit is nonrefundable, so you can't get back more on the credit than you owe in taxes. You can't apply any excess credit to future tax years. Business in your home? The tax credit can be applied to a home partly used as a business. As long as you do not claim more than a 20% use for business purposes, you can still claim the full energy tax credit. Doors, windows, and skylights must meet Energy Star and insulation and air sealing materials or systems must meet IECC standards that were in effect 2 years prior to the installation. To Repeat Doors are limited to $250 per door and a maximum of $500. Windows and skylights are limited to $600. Insulation and air sealing have no limit except the $1,200 annual limit for all the above; however, labor for installing building envelope components; i.e., insulation, does not qualify for the credit. Even gas furnaces can qualify as long as they meet the CEE’s, Consortium for Energy Efficiency, highest efficiency tier. The maximum credit is $600. Heat pumps meeting CEE’s highest efficiency tier can take up to $2000. Determining the rated efficiency of

Energy Tax Credits

We have been in a state of suspened animation for a few years, first by the DOE, the IRS, and the State of Arkansas. You may recall that we were adament that whatever our industry did should be aimed at helping Arkansans not just selling heat pumps, especially in homes that are not energy prepared for a heat pump. Since we are still some time away from knowing what Arkansas is doing which will determine how much federal money is available, we will address what we think we know about present law that Arkansas has nothing to say about. “ If you make qualified energy-efficient improvements to your home after Jan. 1, 2023, you may qualify for a tax credit up to $3,200. You can claim the credit for improvements made through 2032. ” (1) Beginning Jan1, 2023, the credit equals 30% of certain qualified expenses including: • Qualified energy efficiency improvements installed during the year • Residential energy property expenses • Home Energy Audits The maximum (total) credit you can claim each year is: • $1,200 for energy property costs and certain energy efficient home improvements, with limits on doors ($250 per door and $500 total), windows ($600) and home energy audits ($150) EEHIC, Energy Efficient Home Improvement Credit