Homes in Washington, D.C., and surrounding areas have a certain historic charm to them. However, older homes weren’t necessarily built with energy efficiency in mind. Because of this, many homeowners find themselves investing in new heating and cooling systems.
If this sounds like you and you’re looking for ways to offset the cost of a new system, you’re in luck! Read on to learn about energy efficiency rebates including how they work, whether you’re eligible, and how to apply for them. Go green in DC while saving money!
The Inflation Reduction Act
The Inflation Reduction Act (IRA) is a federal law providing approximately $370 billion for national investments in clean energy and energy efficiency. This includes rebates and tax incentives for Washington, DC residents who upgrade to more energy-efficient systems, including heating and cooling.
The Home Efficiency Rebates Program
The Home Efficiency Rebates program is part of the national IRA. This initiative is aimed at promoting energy efficiency among residents and homeowners, including those here in DC. It provides financial incentives for whole-home energy-saving upgrades that create a more sustainable and cost-effective approach to household energy consumption.
The Home Electrification and Appliances Rebates Program
The Home Electrification and Appliance Rebates Program incentivizes residents to transition toward cleaner and more energy-efficient through upgraded home appliances. Unlike the Home Efficiency Rebates Program, this one specifically targets high-efficiency home appliances and equipment, such as washing machines or HVAC units.
What Other Rebates Are Available?
For residents of Washington, DC, there are many more rebates available to make your home more energy-efficient. Here are just some of the HVAC and plumbing rebates available.
The Air Source Heat Pumps Tax Credit
This program allows individuals to claim a tax credit for investments in air-source heat pumps, heat pump water heaters, and biomass stoves/boilers. The tax credit has an annual total limit of $2,000, which includes a combination of these technologies. To qualify, residents must utilize electric heating and cooling systems with an air-source heat pump.
Hot Water Boilers (Natural Gas, Propane, Oil) Tax Credit
Effective for products purchased and installed between January 1, 2023, and December 31, 2032, this tax credit allows individuals to claim 30% of the project cost. To qualify, hot water boilers must meet specific efficiency criteria.
Central Air Conditioners Tax Credit
Effective from January 1, 2023, this program allows individuals to claim a tax credit equal to 30% of the installation costs for high-efficiency central air conditioning systems, with a maximum credit limit of $600. To qualify, the air conditioner must meet ENERGY STAR® Most Efficient criteria.
Furnaces (Natural Gas, Oil) Tax Credits
As part of the Residential Tax Credits program, individuals can receive a tax credit covering up to 10% of the cost of insulation materials and other energy-efficient improvements, including qualifying furnaces.
Smart Thermostat Rebate
The DC Sustainable Energy Utility (DCSEU) offers incentives for ENERGY STAR-certified smart thermostats purchased new. These devices contribute to energy efficiency, allowing users to optimize heating and cooling systems intelligently. To qualify for the tax credit, residents must ensure that the smart thermostat meets ENERGY STAR standards.
John C. Flood Can Upgrade Your Home Systems
When it comes to the absolute best in home energy upgrades, look no further than the expert professionals at John C. Flood. Our trained, reliable technicians can help you make the best decisions for upgrading your home to newer, more efficient systems that qualify for federal energy rebates.