With the passing of the 2022 Inflation Reduction Act, additional funds are expected to become available for electric and green energy updates. At JK Mechanical, we’re excited about incentives that will make it easier and more affordable for home and business owners to add solar energy, geothermal HVAC, energy efficient electric heat pumps, and more. While many details of the incentives will take time to implement and may not be defined until 2024, there are many great ways to save today on reliable, renewable upgrades:
According to the Consumer Price Index report, energy inflation remains very high at 17.6% as of October 2022. With a solar PV array, many facilities and businesses (including JK Mechanical!) largely or completely offset their electric expenses. With the passing of the 2022 Inflation Reduction Act, the federal tax credit has been increased back to 30% through 2032. Plus, for the first time, the tax credit now applies to non-profits as well*, offering a great opportunity for facilities of all sizes to reduce their utility costs while benefitting from tax credits or rebates.
Geothermal Heating & Cooling
Like Solar PV, Geothermal Heat Pumps are also now eligible for the extended tax credit at 30% through 2032, including expanded eligibility for non-profit organizations for the first time ever. Geothermal heating and cooling operate on electricity but relies on the earth’s thermal energy to maintain perfect year-round temperature at an average of 50% savings compared to traditional electric heat pumps.
For commercial and non-profit facilities, some additional installation requirements need to be met to receive the full tax credit including USA-made equipment and Prevailing Wage Billing. The JK Mechanical HVAC replacement team is available to walk you through all options that those requirements to help you take full advantage of available credits. Request your complimentary quote with our experienced consultants today.
Energy Efficient Buildings Tax Deduction
Under the IRA, the maximum allowable benefit for the 179D Energy Efficient Buildings Tax Deduction will expand in 2023 from $1.88 per square foot to $5.00 per SF. To qualify, new construction projects and renovated buildings must meet specific energy-reduction requirements including features such as interior lighting, HVAC and hot-water. And, like the Geothermal and Solar provisions, this credit is now also eligible for non-profit facilities.
For many organizations, new provisions and expansions in the Inflation Reduction Act can make energy-efficiency and renewable solutions more financially viable than ever. JK Mechanical has been delivering smart energy and comfort solutions of all sizes to Central PA since 1979. Contact us today to talk about your project and how we can help you save.
*Our goal is to make the tax credit process as painless as possible; however, please note that JK Mechanical is not a financial or accounting organization and cannot offer financial advice. We will do our best to provide you with the resources you need along the way so you, your family, or your organization can secure all the tax incentives possible.