On August 16 of this year, the president of the United States signed the Inflation Reduction Act into law. That means a change in the tax credits available to both the residential and commercial markets.
***Update as of August 31, 2022: The Non-Business Energy Property Tax Credits have been extended and apply retroactively through 12/31/2022. In 2023, there will be additional updates. Stay tuned for details!
Did you upgrade your air conditioner in 2021 or 2022? In addition to bringing you benefits like lower electric bills, your new AC could save you some cash this tax season.
In 2022, the government extended the Non-Business Energy Property Tax Credits on residential air conditioning equipment. This means that certain qualifying air conditioners and heat pumps installedthrough December 31, 2022 are eligible for a $300 tax credit.
The tax credit also retroactively applies to new air conditioners installed in the 2018-2021 tax year. (The tax credit originally expired December 31, 2017.) If you have not previously claimed the Non-Business Energy Property Tax Credit, consult with your tax professional for details.