With the movement toward greener home systems, there are rebates and tax incentives abound! So, if you are ready to upgrade to a higher-efficiency HVAC system, make sure you get in on these HVAC rebates and tax incentives!
Federal Tax Credits
The federal 25C energy tax credit program offers dollar-for-dollar tax credits for Energy Star-certified HVAC systems, water heaters and for home-efficiency upgrades. Following are the details:
- $300 tax credit for central A/Cs and heat pumps.
- $150 tax credit for furnaces and boilers.
- $300 tax credit for water heaters.
- Home-efficiency upgrades offer tax credit of 10 percent of the cost of materials with a $500 credit cap.
- To receive the 25C energy tax credit, your HVAC system must be purchased and installed before December 31, 2016.
Rebates from Utility Companies
If you have an older water heater, it may be soaking up as much as 25 percent of your home's energy budget. Additionally, older water heaters may use more water due to inefficient heating. Fortunately, the Pacific Gas & Electric Company (PG&E) offers great rebates for Energy Star-certified gas storage water heaters and electric heat pump storage water heaters, in addition to your 25C tax credit:
- $200 rebate for a gas storage water heater.
- $500 rebate for an electric heat pump storage water heater.
- Units must be purchased and installed between January 1, 2016 and December 31, 2016.
Solar systems offer the highest rebates and tax credits on the block. Receive a $4,366 cash rebate for a solar water heater system through the California Solar Initiative CSI-Thermal Program. Make sure it's installed by December 31, 2016.
Harness the sun's energy and feel warm all over! Install a solar-powered, Energy Star-qualified system for your home before December 31, 2019 and receive a dollar-for-dollar tax credit for up to 30 percent of the total cost.
To learn more, bookmark Valley Heating, Cooling, Electrical as your solar and HVAC rebates and tax incentives specialists. Visit our website for in-depth information on most HVAC topics, or just give us a call at (408) 868-5500. We serve residents throughout South Bay Peninsula and Santa Cruz.
Our goal is to help educate our customers in the South Bay Peninsula and Santa Cruz areas of California about energy and home comfort issues (specific to HVAC systems).