Home Energy & Plumbing Rebates & Tax Incentives in Charlotte

Charlotte homeowners looking to save money on their upcoming HVAC, electrical, and plumbing replacements will be happy to learn about the available rebates and tax incentives that can help them achieve that. In this blog post, we’ll cover many of the rebates and tax credits available to North Carolina homeowners, providing helpful insights to maximize savings on your next project.

What is the Inflation Reduction Act?

The Inflation Reduction Act (IRA) is a special program that was signed into law in August 2022 that aims to combat climate change by incentivizing homeowners to make energy-efficient upgrades to their properties. Through the program, Charlotte homeowners can take advantage of up to $14,000 in tax credits and rebates for any qualifying energy-efficient upgrades to their HVAC, electrical, or plumbing equipment.

Available Incentives Through the IRA

There are two rebate programs under the IRA — the HOMES rebate program and the HEEHRP. The biggest difference between these two programs is that the HOMES program is designed for all families, while the HEEHRP offers special rebates for low- and middle-income families making electrical updates.

Tax Credits for HVAC, Plumbing & Electrical

Under the IRA, homeowners may be eligible to receive a tax credit up to 30% of the cost of any qualified electrification upgrades. Depending on which equipment you choose to replace, the following annual tax credit limits may apply:

• Annual Credit for Heat Pump Water Heaters: $2,000

• Annual Credit for Heat Pumps: $2,000

• Annual Credit for Air Conditioners: $600

• Annual Credit for Furnaces: $600

• Annual Credit for Water Heaters: $600

• Annual Credit for Boilers: $600

• Annual Credit for Electrical Panels: $600

• Annual Credit for Energy Audit: $150

System Qualification Requirements for IRA Tax Credits

To qualify for available IRA tax credits, any systems installed must be ENERGY STAR-rated and installed at your primary residence. ENERGY STAR® is a program that was established in 1992 that measures the efficiency of many different home appliances, helping homeowners save money on their utility expenses.

Not only does investing in ENERGY STAR-rated equipment help you qualify for tax incentives, but these appliances provide ongoing savings in the form of reduced energy bills for your home.

Eligibility Requirements for Homeowners

Since each state is charged with administering the IRA individually, availability and eligibility requirements may vary, so it’s important to consult with a tax professional to ensure compliance so you can maximize your savings. Eligibility and total rebate amounts for the HEEHRP are dependent on household income:

• Households with an income level ≤ 80% of their area’s median income may qualify for 100% of the system purchase price

• Households with an income level between 80% – 150% of their area’s median income may qualify for 50% of the system purchase price

• Households with an income level ≥ 150% of their area’s median income are ineligible for the HEEHRP

Save on Your Home Energy Updates with Parks!

Navigating the available tax incentives and rebate programs for Charlotte homeowners can be overwhelming. At Parks Heating Cooling Plumbing & Electrical, our team understands the nuances of these incentives, allowing us to help you maximize your savings as you plan your home energy and plumbing upgrades.

Schedule your HVAC, plumbing, or electrical replacement project with our team by calling 704-596-8200.