New 2023 HVAC Installation Tax Credits in Massachusetts

We have great news for South Shore residents! Energy-efficiency tax credits for home and business owners under 2022’s Inflation Reduction Act (IRA) have now been extended through 2032.

Make energy-efficient improvements and invest in ENERGY STAR®-certified equipment to benefit from federal income tax credits and rebates. This program reduces the cost of transitioning to a clean energy future.

If you’ve been waiting to invest in more energy-efficient HVAC systems until they become more affordable, financial help is now available when you upgrade your property’s heating and cooling systems.

Who Qualifies for Energy-Efficiency Rebates?

Tax credits and rebates differ for commercial buildings, new homes, and existing homes. For instance, commercial property owners can claim a deduction when they increase their energy efficiency by at least 25%. New home builders must meet ENERGY STAR program requirements for single-family, manufactured, and multi-family properties.

This blog covers tax credits that apply to existing homes that serve as primary residences, not new builds or rentals. To qualify for tax credits through the Inflation Reduction Act, Massachusetts households must make less than 150% of the area’s median income. Up to 100% of equipment and installation costs can be covered by rebates when your income is less than 80% of the median income,

What Equipment Is Included in the Energy-Efficient Home Improvement Tax Credits?

The Inflation Reduction Act is designed to tackle climate change and help the U.S. reach its sustainability goals by 2030. Allocating nearly $400 billion in clean energy technologies and resources, it aims to improve energy efficiency and cut greenhouse gas emissions by over 40%.

You can be eligible for rebates if you install:

• Air-source heat pumps up to $16,000 rated 16 SEER or higher that serve as the sole source of heating and cooling
• Gas furnaces up to $6,000 for 95% AFUE or higher
• Gas boilers up to $6,600 for 95% AFUE or higher.

​​​​​​​Central air conditioners rated 16 SEER or higher installed between January 1, 2023, and December 31, 2032, can qualify for a federal tax credit for 30% of the installation cost with a maximum benefit of $600.

The Commonwealth Energy Tool for Savings (energyCENTS) is an easy way to explore and calculate your saving opportunities. It lists rebates, financing, and loans for everything from home energy assessments to solar energy and energy-efficiency appliances.

Keep in mind that while there might be incentives available for DIY projects, many, if not most, require professional installation from a licensed technician.

Contact Blue Bear for HVAC Replacement in the South Shore

Blue Bear Plumbing, Heating & Air can help you navigate the replacement process so you can enjoy all the advantages of available tax credits and rebates. Whether you want to install a heat pump, furnace, boiler, or air conditioner, choose the South Shore’s most reliable source for home comfort solutions.

Contact us online or call 781-706-4682 to request HVAC replacement today.