Tax Credits Expiring for Home Energy Upgrades
Tax credits for home energy upgrades, like heat pumps and efficiency windows, had an expiration date set for 2034. With that timeline, many people would have the opportunity to save up for projects to cut their Georgia gas use. That was until the “Big Beautiful Bill” passed in July this year. This law ends these credits for December 31, 2025. But there is still time to grab these before the end of the year. So, let’s get into some details about home energy upgrades to get your tax credits.
Appliance Updates for Tax Credits
Efficient appliances make a huge difference in your energy use and lowering natural gas bills. Highest efficiency A/C and furnaces, and high efficiency water heaters are appliances that count for the credit. If you already have appliances, and just need an upgrade, you won’t need much new plumbing or ventilation. That means, you could get it in quickly to get your tax credit.
The tax credits for these projects are up to 30% of the total cost. That’s up to $2k for heat pumps and $600 for A/C, gas furnaces, or water heaters.
Tax Credits for Sealing Your Home
Projects that serve to better insulate and seal air leaks in your home are also eligible for tax credits. Any projects under this category have a tax credit of 30% max. Even products as simple as weather stripping and caulk apply as long as they’re labeled for air sealing. Furthermore, these small projects can have a big impact on energy costs even if you can’t get the best natural gas rate.
Windows and doors are a bigger project. Firstly, they must meet Energy Star requirements and typically need at least a few days to install. Doors and windows can go in quickly and easily. However, if you are putting in a different sizes, it’s a bigger project that may require reframing an exterior wall.
Insulation tax credits can go up to $1,200. Depending on what kind of insulation you want or need, it can be an extensive project if you add it to an exterior wall. On the other hand, simply adding more insulation to the attic could be a weekend DIY project. Either way, you can act quickly and get it done before this credit goes “out the window”.
Is There Time to Get Solar Panels?
This is the project that could take the most time, yet installation is pretty quick and easy. The average total time frame is about three months. However, contractors will be trying to work in as many projects as possible before the tax credits expire. Keep in mind that the project needs to be installed by December 31st to get the credit. You can get up to 30% of the project cost with no cap. Every one of these project contributes green energy to the grid and is a benefit to many of us.
For more about home energy upgrade tax credits or other energy savings information, visit us at https://www.georgiagassavings.com.