Use It Before You Lose It! What You Need to Know About 2024 Home Upgrade Tax Credits
Use It Before You Lose It! What You Need to Know About 2024 Home Upgrade Tax Credits
Time is running out, but don’t stress—we’ve got you covered!
Maximize your savings on home upgrades this year. You don’t have much time left! Between federal tax credits and utility rebates, there has never been a better time to invest in your home’s comfort and efficiency. Let’s break down exactly how much you could save and why you need to act before December 31st.
How Can I Save Money on Home Upgrades?
If you’ve been considering upgrading your home’s essential systems (think: heating, cooling, electrical, etc.), you’re in luck. The Inflation Reduction Act (IRA) offers significant tax credits for energy-efficient improvements, and local utility companies are sweetening the deal with additional rebates. In fact, Xcel Energy is currently offering double rebates on eligible heat pumps through December 31, 2024!
How Much Can I Save by Upgrading My Home System?
Let’s look at the potential savings by category:
HVAC Systems
- Heat Pumps: Up to $2,000 in federal tax credits
- Furnaces and Central AC: Up to $600 each in tax credits
- Additional Bonus: Xcel Energy customers may qualify for double rebates on heat pump installations
Water Heaters
- Heat Pump Water Heaters: Up to $2,000 in tax credits
- Traditional and Tankless Models: Up to $600 in tax credits
EV Charger Installation
- Up to $1,000 in tax credits
- Perfect timing if you’re considering switching to an electric vehicle
Psst—an important note: You can claim up to $3,200 in total tax credits annually. This includes a maximum of $2,000 for heat pumps and heat pump water heaters, plus up to $1,200 for other qualified improvements.
How Do I Receive My Tax Credits and Rebates?
We understand that navigating tax credits and rebates can feel overwhelming. Don’t worry; we’ve got you covered! Here’s a quick overview of what you need to know:
Utility Rebates
Good news: we handle all the paperwork for rebates! Our finance office will file the necessary documentation with your utility provider. All you need to do is watch your mailbox for the rebate check, which typically arrives within 1-2 months after installation.
Tax Credits
To claim your federal tax credits, you’ll need to submit IRS Form 5695 with your tax return. The credits apply to the tax year when the equipment is installed, so installations completed in 2024 will be claimed on the return you file in spring 2025.
Why Choose Bonfe for Your Home Upgrades?
Home upgrades can seem stressful enough—add the tight timeline, and we know it’s a lot! We’re here to make things as simple, comfortable, and stress-free as possible. When you’re making a significant investment in your home, you want to work with a company you can trust. Here’s what sets Bonfe apart:
- Lifetime Warranty: Our repairs and installations come with an industry-leading Lifetime Warranty. As long as you live in your home, you’re covered—you’ll only pay the standard $99 service charge.
- Local Expertise: We’re one of the few remaining 100% family-owned and locally operated home services providers in the Twin Cities. Established in South St. Paul in 1993, we’ve been proudly serving the Greater Metro for over 30 years!
- Stellar Reputation: We maintain an A+ rating from the BBB and a 4.8-star rating from over 9,200 Google reviews.
- Expert Guidance: Our technicians will help you select equipment that maximizes your savings and meets your unique needs.
Don’t Wait Until It’s Too Late
Remember, to claim these credits on your 2024 tax return, installations must be completed by December 31st.
Plus, with Xcel Energy’s double rebate offer on heat pumps ending this year, now is the perfect time to upgrade your home’s comfort and efficiency.
Ready to maximize your savings?
Let us help you navigate the process and ensure you don’t leave any money on the table.
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