Energy Tax Credits You Should Know About

With the cost of almost everything going up, there are many ways to save on home energy costs.

“Tax credits and rebates continue to be offered to homeowners,” says Chuck Ault, co-owner with Kevin Lehman of Collier’s Heating and Air Conditioning in Warsaw. “We try to educate as many people as we can about the many incentives available to people who choose to install energy-efficient equipment.”

For example, the tax credit for geothermal heat pump installation was extended through 2034. Geothermal equipment, which uses stored heat energy from the ground for heating and cooling, is eligible for the tax credit when it meets Energy Star requirements at the time of installation. The energy tax credit can be combined with solar and wind credits as well as energy-efficiency upgrade credits. A 30% federal tax credit for residential ground source heat pump installations has been extended through Dec. 31, 2032; there’s a 26% credit for systems installed in 2033 and 22% credit for installs in 2034.

In addition, some state, local and utility incentives may be available in a particular area for even more savings. To find those, look at the current Database of State Incentives for Renewables & Efficiency (DSIRE). There are also tax credits available for wood and pellet heaters, and most people are familiar with the solar tax credits, as explained on the website.

Ault says just as important as tax credits and rebates is homeowners’ concern for good air quality.

“Since the pandemic, homeowners are more concerned about air quality and the interest hasn’t let up. Homes are so airtight today; there is very little air exchange,” he says. “The air quality can be more negatively impacted, too, depending the number of people living in a home, the number of pets, and the level of play and work activity stirring up dust and dirt.”

Outside air is naturally purified through rain and wind as well as through vegetation.

To improve indoor air quality, people can upgrade filtration systems. Air purifier systems can also kill germs and get rid of odors.

Ault says a priority on customer service is what sets Collier’s apart from its competition. A Homesaver’s Club provides maintenance and repair of water heaters, fireplaces, humidifiers and more for a small monthly fee.

“We do our best to give the customer what they need,” Ault says. “We evaluate situations, present options on whether to repair or replace equipment, and offer advice to help people make the best decisions. We want to do what’s right for the customer.”

For more information or for a free consultation and estimate, call (574) 212-2965.