What is the Inflation Reduction Act?
Signed into law on August 16, 2022, the federally funded Inflation Reduction Act (IRA) gives you an opportunity to save on the cost of replacing or upgrading your HVAC system with higher-efficiency equipment that can reduce energy consumption and lower utility bills. It will also help reduce the environmental impact of carbon emissions across the United States by 40% by 2030.
The Inflation Reduction Act names the Consortium for Energy Efficiency (CEE) tiers as the basis for federal tax credits across several product categories through 2032. The IRA cites products “which meet or exceed the highest efficiency tier (not including any Advanced Tier)”. The tax credit eligible tier may be Tier 1, 2, or 3, depending on the product category.
By installing high-efficiency equipment that meets or exceeds the CEE Tier 1 standards, homeowners can take advantage of programs to offset their costs via three federal or state-level programs:
What else you should know about the Inflation Reduction Act
Tax credits and deductions under 25C began on January 1, 2023. States began activating their rebate programs for HEEHRP and HOMES in 2024 and will continue into 2025.
Receiving a tax credit is contingent upon having taxable income in the year that it is applied. See your tax professional for details on how to take advantage.
While federally funded, each state will have some discretion regarding how specific funds are used. Click here to find specifics on each program.
Featured products that qualify
Whether it’s heat pumps, air conditioners or gas furnaces, Luxaire® has a variety of HVAC products that include tax credit incentives with the Inflation Reduction Act.
Save even more by combining tax credits and rebates from Luxaire®
REBATES
Visit our Rebates and Savings Center to find more high-efficiency Luxaire® equipment that qualifies for savings in your local area.
TAX CREDITS
Find the latest IRA updates on the IRS IRA page. Consult your tax professional for details on your ability to qualify.
FINANCE OPTIONS
Your local Luxaire® dealer can help you determine how to make the most of the Inflation Reduction Act by finding the perfect efficiency updates for your home.
