Utah Inflation Reduction Act Information

Here’s why Salt Lake City, UT, 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 provides tax credits and rebates to encourage Utah 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

Just Right Plumbing, Heating, & Cooling 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).

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

  • Air Conditioners—Tax credit capped at $600
  • Heat Pumps—Tax credit capped at $2,000
  • Furnaces and Boilers—Tax credit capped at $600
  • Geothermal Systems—Uncapped 30 percent tax credit on purchase and installation
  • Solar Paneling—Uncapped 30 percent tax credit on purchase and installation

Here is a closer look at heating, ventilation, and air conditioning (HVAC) products and eligibility requirements:

  • All ducted air-source heat pumps with the ENERGY STAR® label qualify.
  • Split air conditioner systems must have a Seasonal Energy Efficiency Rating 2 (SEER2) of 16 or more. All packaged systems with ENERGY STAR certification are eligible.
  • Gas furnaces must have an annual fuel utilization efficiency (AFUE) rating of at least 97 percent.
  • Gas boilers with an AFUE of at least 95 percent qualify.
  • Oil-fueled boilers and furnaces must be capable of using fuel blends.

 

For more information, please see the following links

U.S. Department of Energy – Energy Savings Hub

Energy-Efficiency Incentives Coming to Utah – Utah Energy Hub

DSIRE (Database of State Incentives for Renewables & Efficiency) – a national database you can filter for Utah-specific incentives as they come online.
https://www.dsireusa.org