Complete Guide to 2024 HVAC Credits in Texas

Expertly Curious

Dallas families looking to upgrade their heating and cooling equipment will be happy to learn that there are plenty of available tax credits and credits that can help them save on their investments.

Thanks to the Inflation Reduction Act, federal credit programs, and local incentives from Texas-based utility companies, residents have many savings opportunities to help reduce the strain an HVAC upgrade can place on their wallets.

In this blog post, the knowledgeable HVAC experts at Willard Cooling, Heating, Plumbing, & Electrical share some of the main credits and tax incentives available to Texans in 2024 that can help you save on your heating and cooling upgrades.

What Is the Inflation Reduction Act?

The Inflation Reduction Act (IRA) is a bill that was signed into law in August 2022. Under this act, funding was provided to each state to develop specific tax credits and credit programs for installing new or replacing existing HVAC systems.

The biggest incentives are provided for ductless mini-split installations and heat pump systems, as these units offer the greatest energy efficiency, which is the biggest priority for the IRA.

Federal Tax Credits for HVAC Upgrades

Through the IRA, Dallas residents may be eligible to receive a federal tax credit of up to 30% of certain eligible expenses. Any energy-efficient upgrades made to your home between Jan. 1, 2023, and Dec. 31, 2032, may be eligible for up to $3,200 in annual tax credits.

It’s important to note that there are limits on the allowable annual tax credit depending on the type of system you choose to install or replace.

Here’s a breakdown of the maximum allowable credit each family may claim during a given year, depending on the system they have installed:

• Heat pump water heaters: $2,000
• Biomass stoves & boilers: $2,000
• Natural gas water heaters & furnaces: $600
• Central air conditioning: $600
• Electrical panels & related equipment: $600
• Advanced main air circulating fan: $50
• Insulation upgrades: $500
• Home energy audits: $150

Credit Programs for HVAC Upgrades

Along with the federal tax credits offered under the IRA, the bill also provides guidance for establishing several credit programs for Texans, including:

High-Efficiency Electric Home Rebate Act (HEEHRA)

HEEHRA is a special program designed to help low- and moderate-income households access energy efficiency upgrades. Credits are provided at the point of sale for these systems:

• Heat pump installations: $8,000
• Breaker box upgrades: $4,000
• Wiring updates: $2,500
• Heat pump water heater installations: $1,750
• Insulation upgrades: $1,600

HOMES Rebate Program

Through the HOMES program, all homeowners are eligible for savings on qualifying energy-efficient upgrades made to their properties.

For instance, replacing your central HVAC equipment with a ductless mini-split or heat pump system could qualify you for up to $2,000 (or 30% of the installation cost).

Additional Ways To Save on HVAC Replacements

In addition to federal tax incentives and credits under the IRA, many Texas utility companies also offer credit programs to help homeowners maximize savings on their HVAC upgrades.

For instance, the Residential Energy Efficiency Rebate Program from CPS Energy offers between $90 and $310 per ton for high-efficiency central air conditioner installations. Contact your utility provider to see if there are any available incentives to increase your savings even more.

Maximize Your Savings With Help From Willard Cooling, Heating, Plumbing, & Electrical

Want to save on your HVAC upgrades in 2024? Our team of highly trained technicians has a deep understanding of local, state, and federal tax incentives and credits.

We can help guide you through your equipment selection, ensuring the replacement systems you choose are eligible for maximum savings through available credit programs.

Schedule your HVAC replacement in Dallas by calling Willard Cooling, Heating, Plumbing, & Electrical at (972) 564-9785 today.