Energy Savings Translates to Tax Benefits
In Southern California, a great HVAC system is necessary for indoor comfort. However, if your equipment is out of date, the associated energy costs may put an unnecessary strain on your budget. The good news is that there are federal and state incentives designed to encourage energy-efficient upgrades. Read on for some HVAC tax credits and incentives that are available for Southern Californians. Remember, consult your HVAC professional for updates and more info.
Federal Tax Credits: The federal government offers significant tax credits for homeowners who invest in energy-efficient HVAC systems. It’s part of a broader effort to promote clean energy and reduce carbon emissions, and there are new options being added frequently.
Non-Business Energy Property Credit: This credit allows you to claim up to 10% of the cost of qualified energy-efficient improvements, including HVAC systems, up to a maximum of $500. However, there are specific limits for different types of equipment and installation costs.
Residential Energy-Efficient Property Credit: This credit covers 30% of the cost of certain energy-efficient property, including solar panels and geothermal heat pumps. There’s no maximum credit limit for qualified solar electric property expenditures.
Qualified HVAC Equipment: To qualify, your HVAC equipment must meet certain energy-efficiency standards. For instance, air source heat pumps, central air conditioning units, and natural gas, propane, or oil furnaces must meet specific performance guidelines to be eligible. Ask your HVAC professional for more information.
California State Incentives: Along with federal tax credits, California also offers incentives to promote energy-efficient HVAC systems.
California Solar Initiative (CSI): While this program focuses on solar energy, it also encourages the purchase of an energy-efficient HVAC system, which is a boon for everyone. The excess electricity generated by solar panels can offset the energy consumption of your HVAC equipment, reducing overall utility bills.
California Single Family Affordable Solar Homes (SASH) Program: This program offers solar incentives to low-income homeowners, helping make their homes more energy-efficient. While not directly related to HVAC, it can help reduce overall energy expenses.
Energy Upgrade California: This program offers rebates and incentives for homeowners who are embarking on whole-home energy projects, some of which include HVAC system replacements or improvements. The incentives can vary based on the specific upgrades made and their energy savings, so check with your friendly neighborhood tax professional– or one of our Air-Tro experts–before moving forward.
Local Utility Rebates: Local utilities in Southern California offer many rebates for homeowners who install energy-efficient HVAC systems or make other energy-saving improvements. These can also help offset the upfront costs of upgrading your HVAC equipment.
The bottom line? By taking advantage of these HVAC tax credits and incentives, you can enjoy the benefits of energy-efficient heating and cooling while saving money on energy bills, all with the help of Uncle Sam. It’s a win for our environment, and most importantly, for your bank account.
Need help figuring out what upgrades make the most sense for your pocketbook and your home? Call Air-Tro. We’ve been keeping California comfortable since 1969. (626)357-3535
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