Right now is an excellent year to have Sam's Air Control replace the HVAC equipment in your Metuchen, NJ home. Not only are there increasingly stringent regulations on gas-fired boilers and furnaces throughout the nation, but many new, eco-friendly AC refrigerants have hit the scene. With an outstanding range of hybrid heat pumps, electric heaters, and high-efficiency furnaces and air conditioners to choose from, there are countless ways to lower your carbon footprint and save money. These include many exciting tax incentives and state-issued rebates that locals can take advantage of. Read on to learn all about the incentives offers by the federal government, the State of New Jersey, and local utility companies in 2024.
The Inflation Reduction Act of 2022
The Inflation Reduction Act (IRA) of 2022 is recognized as the most significant climate legislation in the history of the United States. It takes a two-pronged approach to limiting the financial burden of qualifying HVAC improvements and home efficiency updates. To start, it offers homeowners generous tax credits that they can benefit from at the end of the year. It also allocates substantial funding to individual states. Each state disburses these monies by working in accordance with the United States Department of Energy (DOE) and other federal, regulatory authorities.
What Are Federal Tax Credits?
Tax credits under the 2022 IRA help homeowners offset their end-of-year tax debts or increase their end-of-year tax returns. To qualify, consumers must install heat pumps, furnaces, or air conditioners with exceptional efficiency. For home energy efficiency upgrades, homeowners must invest in measures such as:
- Adding new insulation
- Sealing and insulating HVAC ducting
- Upgrading windows and doors
- Installing infrastructure to support appliance electrification
You can even claim a federal tax credit in 2024 to offset the costs of having a professional home energy audit performed.
State-Issued HVAC Rebates?
State-issued rebates are largely reserved for low-income and moderate-income households. These monies are issued after proof of installation is submitted and all other program requirements are fulfilled. Working in conjunction with the DOE, each state has the freedom to streamline programs to best meet the needs of state residents. Some states also offer additional rebate monies funded entirely by state tax revenues.
Grow Your Home’s Value With Federally Incentivized HVAC Upgrades Through 2032
You can upgrade your HVAC system and make efficiency improvements in 2024 while enjoying full tax credits for all qualifying projects. However, you can make additional qualifying improvements each year through 2032 and enjoy the same tax breaks. This extended availability of funding allows consumers to make major changes in manageable stages without feeling pressured to get everything done at once.
What You Need To Know About Federal HVAC Tax Rebates
According to ENERGY STAR, with all available tax credits combined, homeowners can save up to $3,200 annually. To file for a federal energy tax credit for either home efficiency improvements or HVAC equipment upgrades, you must complete the IRS tax form 5695 when filing your federal tax return.
You can claim a credit of up to $2,000 for installing an air-source heat pump with a seasonal energy efficiency ratio (SEER2) rating of 16 or higher, or you can claim up to $600 for a central AC with a SEER2 of at least 16. Geothermal heating systems, electric furnaces, hybrid heat pumps, and electric heaters are qualified for federal tax credits as well. With AFUE ratings of 100%, electric heaters automatically meet federal efficiency requirements for funding.
State-Funded HVAC Rebates in New Jersey and Metuchen
Funding allocated for the state of New Jersey by the 2022 Inflation Reduction Act is managed by New Jersey’s Clean Energy Program (NJCEP). To expedite the distribution of funding from year to year, NJCEP has passed federal monies on to local utility companies.
With New Jersey’s progressive energy deregulation laws, energy supply and delivery are separated throughout the state. This gives homeowners the ability to shop for different utility suppliers for needs-appropriate rates and services. When it comes to state-funded rebate programs, those also mean that homeowners have multiple, possible ways to save. Moreover, in New Jersey, interested rebate applicants face fewer income-related barriers to funding than residents of other states.
The SAVEGREEN Project From New Jersey Natural Gas
While homeowners have the power to choose from multiple utility companies, the primary subsidiary of New Jersey Resources is New Jersey Natural Gas (NSNG). In 2024, you can claim a $1,000 NSNG rebate under the SAVEGREEN Project when installing any new furnace with an AFUE rating between 95% and 96.9%. If you opt for a furnace with an AFUE rating of 97% or higher, you can claim an NSNG rebate of up to $1,500.
NSNG is also offering rebates of $1,500 for combination furnaces and electric heaters. If you’re interested in upgrading your water heating equipment as well, you can earn up to $2,000 in NSNG rebates for installing a new furnace with a 97% AFUE rating along with any eligible water heater.
As per the terms of the SAVEGREEN Project, the equipment in question must be installed after July 1, 2023 and before June 30, 2024. Moreover, your rebate application must be postmarked within 120 days of purchasing your equipment. Interested homeowners can also apply for up to $15,000 in 0% APR financing for the installation of qualifying HVAC upgrades.
Elizabethtown Gas
Elizabethtown Gas is helping its Metuchen customers save in multiple ways throughout 2024. Valid on all installations performed on or after July 1, 2023, Elizabethtown Gas is offering up to $1,500 for qualifying HVAC upgrades. It also offers customers 0% APR financing for these projects via its On-Bill Repayment Program. Thus, if you’re an Elizabethtown Gas customer and want to upgrade your HVAC equipment but lack a budget, these monies could help. Best of all, with the right equipment types, you’ll still qualify for federal tax incentives and all other applicable state-funded rebate programs.
Jersey Central Power and Light
Jersey Central Power and Light (JCP&L) has offers of up to $1,500 for qualifying HVAC upgrades. Applications for this funding are processed and approved by CLEAResult and must be postmarked within 180 days of installation.
For qualifying ductless air conditioners, homeowners can claim rebates of up to $500. JCP&L is offering up to $400 in rebates for qualifying ductless heat pumps. Locals can also get up to $100 in rebates for qualifying furnace fans and $500 for eligible central ACs. If you opt to install a geothermal heat pump in your Metuchen home, you could receive a rebate of $1,500.
How To Get the Most From State and Federal Incentives in 2024
There’s a lot that goes into submitting applications for HVAC rebates and qualifying for federal tax credits. The best way to avoid end-of-year tax woes is by working with a reputable and experienced HVAC company. We can help you target the right equipment types and models for optimizing your savings across all incentives. We can also assist you in submitting the right documentation to ensure funding approvals.
At Sam's Air Control, we offer top-notch heating, cooling, and indoor air quality services. We also provide ductless mini-split systems, geothermal heating, ductwork, and preventative maintenance plans. To make the most of federal and state-issued HVAC incentives in 2024, get in touch with us at Sam's Air Control today!
