In Idaho, homeowners have access to various federal and state incentives for installing energy-efficient HVAC (Heating, Ventilation, and Air Conditioning) equipment. These incentives aim to reduce energy consumption, lower utility bills, and promote environmental sustainability.
Federal Tax Credits
Under the Inflation Reduction Act (IRA) of 2022, homeowners can benefit from the Energy Efficient Home Improvement Credit, which offers a 30% tax credit on the purchase and installation costs of qualifying HVAC equipment through 2032. The annual limit for this credit is $3,200. Specific caps within this limit include:
- Heat Pumps and Heat Pump Water Heaters: Up to $2,000.
- Air Conditioners, Furnaces, and Boilers: Up to $600.
- Home Energy Audits: Up to $150.
- Electrical Panel Upgrades: Up to $600.
To qualify, the equipment must meet specific energy efficiency standards, often indicated by the ENERGY STAR® certification. For instance, split-system air conditioners should have a SEER2 rating of 16 or higher.
State Incentives
In addition to federal credits, Idaho offers state-level incentives:
- Idaho Governor’s Office of Energy and Mineral Resources: Provides low-interest loans to fund energy efficiency projects for single-family homes.
- Idaho Power’s Heating and Cooling Efficiency Program: Offers cash incentives for energy-efficient equipment and services, helping homeowners maintain comfort year-round while saving money.
Utility Company Programs
Utility companies in Idaho also provide programs to encourage energy efficiency:
- A/C Cool Credit Program by Idaho Power: Residential customers with qualifying central air systems or air-source heat pumps can receive a $5 credit on their July, August, September, and October statements after enrolling in the program.
Eligibility and Application
To take advantage of these incentives:
- Ensure Equipment Qualification: Verify that the HVAC equipment meets the required energy efficiency standards.
- Maintain Documentation: Keep all purchase and installation receipts.
- Consult Professionals: Work with certified HVAC contractors familiar with federal and state incentive programs to ensure proper installation and compliance.
- File Necessary Forms: For federal tax credits, file Form 5695, Residential Energy Credits, with your tax return.
By leveraging these incentives, Idaho homeowners can significantly offset the costs of upgrading to energy-efficient HVAC systems, leading to long-term savings and environmental benefits.