Inflation Reduction Act

Colorado Inflation Reduction Act Information

Here’s why Denver, CO, property owners should care about the Inflation Reduction Act of 2022. It’s an opportunity. Signed into law in August 2022, the Inflation Reduction Act (IRA) provides tax credits and rebates to encourage Colorado homeowners to replace older appliances with high-efficiency equipment that does a better job at a lower operating cost.

How to Take Advantage of the Inflation Reduction Act

Controlling Systems can help pinpoint areas in your home or business where you can save money and reduce your carbon footprint, allowing you to use the best tax credits and rebates.

HVAC Tax Credits Homeowners Can Claim

The Inflation Reduction Act extends and expands the existing Energy Efficient Home Improvement Credit (Section 25C) and the Residential Clean Energy Credit (Section 25D) to homeowners.

If you installed rooftop solar in 2022, it is eligible for the new, 30 percent 25D tax credit. If you installed a heat pump in 2022, it is eligible for the old 25C tax credit, or 10 percent of costs up to $300.

Projects installed between January 1, 2023, and 2032 quality for a 30 percent tax credit:

Here is a closer look at HVAC products and eligibility requirements:

HVAC Rebates

The Inflation Reduction Act set aside a $4.3 billion budget, with the money allocated to individual states for disbursement. Funding will vary from state to state, and eligibility is income-based.

For example, the High-Efficiency Electric Home Rebate Act covers 100 percent of electrification project costs (up to $14,000) for low-income households and 50 percent of costs (up to $14,000) for moderate-income households.

Here’s how some of those rebates would work:

Inflation Reduction Act
The rebate program is not available to all households. Because the funds are being allocated to state offices, and each state gets to decide to a certain degree how to distribute the money, it will take some time to fully implement the rebate program. The tax credits, in contrast, are in place right now and will continue to be for the next decade.

Buy Now and Save

Upfront costs are typically the biggest obstacle to upgrading your heating and cooling system. The Inflation Reduction Act of 2022 overcomes that barrier.

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