NEFI CRITICIZES IRS SUMMARY OF CONSUMER TAX CREDIT
Forced Electrification : Continued from page 8
policy makers know that this is not acceptable . Forced Electrification is not acceptable .
Our M & A firm helps oil , propane and HVAC business owners sell their companies . If CHS is implemented in Massachusetts , many business owners will likely not be able to keep up with the costly penalties and may be forced to sell their business . This CHS policy could likely be a boon to our small family-owned M & A practice . But I am more interested in stopping these harmful policies . We believe business owners should exit and retire on their own terms – and not forcibly by poorly conceived state policies that attack freedom of energy choice and taxation of useful heating solutions . l FON
Jeff “ J . T .” Tounge is managing partner of Tounge Associates ( www . toungeassociates . com ), Portland , Me ., a family-owned mergers and acquisitions advisory firm that helps business owners sell their companies . energy tax credit claims for tax year 2023 . “ Investments in clean energy and energy efficiency benefit households by lowering and stabilizing their monthly utility bills , and all Americans by mitigating climate change and air pollution ,” Feiveson and Ashenfarb said in the blog published on Aug . 7 .
The National Energy & Fuels Institute criticized the summary of the data .
“ In its official summary , the administration completely omits mention of furnace and boiler installations and glosses over the lower number of claims for heat pumps , while touting their alleged benefits and providing misleading information on conversion costs and potential consumer savings ,” the Institute charged in the Aug . 13 issue of its newsletter , NEFI Energy Online News ( NEON ), which is circulated to members . The newsletter published its criticisms under a headline that read , “ IRA Tax Credit Update : Homeowners Choose to Keep Their Fuel Systems .”
The newsletter stated that the data provide “ valuable insights into consumer preferences and behavior regarding energy-efficient home improvements ,” and went on to highlight what it called “ key figures :”
Liquid Fuel , Propane , or Natural Gas Furnaces , Boilers , and Water Heaters : 576,690 taxpayers claimed the credit
Residential Heat Pumps and Heat Pump Water Heaters : 371,960 taxpayers claimed the credit
Central Air Conditioners : 488,050 taxpayers claimed the credit . The newsletter noted that the 25C home efficiency tax credit offers up to 30 % of the cost of installation ( including labor ) for qualified HVAC installations . “ However , this amount is capped at $ 600 for qualified furnaces , boilers , and central air conditioners , and $ 2,000 for qualified heat pumps ,” the newsletter pointed out . The tax credits are available for qualified home improvements made in a tax year through 2032 . l FON
NEFI CRITICIZES IRS SUMMARY OF CONSUMER TAX CREDIT
The Inflation Reduction Act , or IRA , extended and expanded tax credits that help households invest in residential clean energy such as solar panels , as well as home energy efficiency . New data from the Internal Revenue Service show that more than 3.4 million families have already claimed more than $ 8 billion in residential clean energy and home energy efficiency credits against their 2023 federal income taxes , the first year that the IRA ’ s full adjustments to the value and scope of these tax credits were in effect . Laura Feiveson , Deputy Assistant Secretary for Microeconomic Policy , and Matthew Ashenfarb , Research Economist , Office of Climate & Energy Economics , published a blog presenting statistics on residential www . fueloilnews . com | FUEL OIL NEWS | SEPTEMBER 2024 33