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The Inflation Reduction Act, 2022

The Inflation Reduction Act of 2022 was drafted to combat the country’s crippling inflation by reducing the deficit. With the passage of this act, clean energy costs will be lowered. It will aggressively tackle the climate crisis in America by investing in domestic energy while promoting clean energy.

Key Components of the Inflation Reduction Act

The Inflation Reduction Act tackles the climate crisis; providing clean energy that is inexpensive, which creates a financially rewarding choice for businesses and households.

Benefits of the Inflation Reduction Act

The new policies tied to this act will reduce costs for families and businesses switching to clean energy. It will also provide investments into disadvantaged communities, giving them public health benefits and reducing environmental injustices. This act addresses the climate crisis, investing directly into programs to reduce pollution and work towards a better tomorrow.

Climate Benefits of the Inflation Reduction Act

The Inflation Reduction Act reinstates the United States as a climate leader. This act aims to reduce carbon emissions by 40% by 2030. The act focuses on making clean energy cheaper than fossil energy, investing $360 billion into clean energy, and urging Americans to make the switch. This will cut American household energy costs by $1000 a year.

Inflation Reduction Act 2022 in US

Get Ready for Some Tax Provisions!

To support clean energy, the Inflation Reduction Act will provide new tax credits and extend other energy-related tax credits, which could benefit homeowners. That tax credit can help individuals purchase energy-efficient HVAC systems, appliances, and cars. Affordable housing can also improve as The Inflation Reduction Act intends to create a $1 billion incentive program for energy-efficient, affordable housing.

Economic Effects of the Inflation Reduction Act

The Inflation Reduction Act aims to raise $737 billion in the next 10 years by taxing companies with more than $1 billion in revenue, a 15% corporate minimum tax, and a 1% tax on corporate stock buybacks. It also aims to hire more IRS employees, and a more than $60 billion investment will go towards creating domestic, clean energy manufacturing jobs for Americans.

Revenue Effects of the Inflation Reduction Act

The Inflation Reduction Act protects families and small businesses making less than $400,00 annually. It will raise revenue by taxing billion-dollar corporations that already owe money and dodge paying federal taxes by implementing the minimum corporate tax of 15%. It also financially rewards individuals for switching to clean energy in their homes or vehicles.

How Does the Inflation Reduction Act Bring Down Inflation?

The Inflation Reduction Act is not a quick fix, but a 10-year plan to reduce the deficit by $300 billion. By assuring corporations are being taxed appropriately, the act will be able to raise more than $700 billion in revenue. These measures reduce the risk of a recession by inflationary risks. These benefits will significantly aid Americans in fighting inflation.

Why Should You Support the Inflation Reduction Act?

By supporting the Inflation Reduction Act, new clean manufacturing jobs will be created and our environment will benefit from reducing carbon emissions and the new emphasis on switching to clean energy.

Absolutely Cool Air Supports the Inflation Reduction Act

As industry-leading HVAC specialists with a keen emphasis on creating a greener tomorrow and living in a clean energy-driven world, Absolutely Cool Air’s AC & Heating supports the 2022 Inflation Reduction Act in every possible way with our partnership with Keen Home Solutions. Navigate our website for more information.

Tax Information

Starting 01/01/2023 through 12/31/2023 – The Energy Efficient Home Improvement Tax credit provide homeowners up to 30% of the installation cost for the qualified expenditures, with an annual maximum of $1200. Qualified Air Conditioners and Furnaces can receive up to $600 each. Qualified heat pumps have a separate aggregate yearly limit allowing taxpayers to claim up to $2000. Thus, the maximum total yearly 25C credit amount may be up to $3200.

Please Note: Specific information regarding the qualified systems and how to claim Home Improvement Tax Credits for 2023 and beyond is forthcoming pending the release of application instructions from the IRS.

Contact Us for Energy Efficient HVAC Solutions

Are you interested in making the move to clean energy and an HVAC system with optimal energy efficiency? Absolutely Cool Air’s AC & Heating solutions, partnered with Keen Home Solutions, is here to help. Contact us today to discuss your options and find out how you can benefit from switching to a clean energy solution. We want to help you go green!

Schedule an Inspection With Us Today