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Tax Credits and Home Energy Improvement Programs

Inflation Reduction Act of 2022

Many of our customers have questions about the new Inflation Reduction Act (IRA) of 2022 and how it will affect their ability to purchase high-efficiency HVAC equipment. We're here to help in any way we can!

Important Disclaimer: The advice provided on this page is intended as a basic guide only and is not to be used as, or substituted for, professional tax preparation advice. We advise you consult with a certified tax preparation specialist or CPA where appropriate regarding any complex issues.

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Tax Credit 25C

The Tax Credit 25C is a federal tax credit that homeowners can claim when they make certain energy-efficient upgrades to their homes, including HVAC upgrades.This credit can help offset the cost of these upgrades and reduce the amount of taxes owed to the government.

To be eligible for the Tax Credit 25C for HVAC upgrades, homeowners must install an energy-efficient air conditioning system, heat pump, or furnace that meets certain requirements. For example, air conditioning systems and heat pumps must have a minimum SEER rating of 16 and EER rating of 13, while furnaces must have an AFUE rating of 95 or higher.

The credit can be up to 30% of the cost of the HVAC upgrades, with a maximum credit of $600. This credit can be claimed once every two years, and homeowners can combine it with other energy-efficient upgrades, such as insulation or windows, to maximize their total credit.

To claim the Tax Credit 25C for HVAC upgrades, homeowners must discuss with their tax professionals.

Overall, the Tax Credit 25C can be a valuable way for homeowners to save money while making their homes more energy-efficient with HVAC upgrades. Be sure to consult with a tax professional or the IRS website for specific details and qualifications regarding the credit.

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Home Energy Improvement Program

Georgia Power's 2023 Home Energy Improvement Program has rebates for your qualifying energy efficiency improvements. Below are improvements we thought may be of interest. For additional information on rebate application requirements, please email us at Marketing@daycosystems.com.

For Single Family & Manufactured Homes:

Mini-Split & Ground Source Heat Pumps

50% of cost up to $1,000

  • Must be ENERGY STAR certified as either Ductless Mini-Spilt Heat Pump or Geothermal Heat Pump

Smart Thermostat

50% of cost up to $75 for single family homes

  • Must be ENERGY STAR certified

Heat Pump Water Heater

50% of cost up to $500

  • Must be ENERGY STAR Certified

Duct Sealing

50% of cost up to $300

  • Majority of ducts must be in unconditioned space
  • A DET verifier must complete duct system testing and provide verification of a greater than or equal to 30% improvement in CFM25
  • Pre and Post CFM25 are required in the rebate application

Attic Insulation

50% of cost up to $250

  • Existing attic insulation must be less than R-19
  • Insulation must be installed across the entire attic structure
  • Add greater than or equal to R-38 and / or improve to comply with code as the structure allows
  • Homes with combustion appliances must pass combustion safety testing by a program contractor