It’s no surprise that heat pumps and climate change are all over the news. Especially in our area where air conditioning and some heater are basically required, many programs are trying to push heat pumps as a way to electrify our heating grid and improve the efficiency of homes around the state.
From state to local credits, there are some seriously good reasons to invest in heat pump technology. Not only will this technology last for at least a decade if taken care of properly, but it will keep your home completely cool and comfortable at an affordable rate. With huge stress being put on our energy grid, having an energy-efficient heating and cooling system like a heat pump is going to go a long way in reducing your energy bills and keeping your home comfortable.
Let’s talk! We’ll figure out from top to bottom what kinds of tax credits you can take advantage of with a heat pump installation in Orinda, CA.
Federal, State and Local Tax Credits
First of all, we need to talk about what exactly these tax credits are and why they’re so important. Tax credits are basically investments that you make in your HVAC system, like installing a new heat pump, which you can get refunded to you when you do your taxes. These differ from state to state and from municipality to municipality, but overall you’re going to find a lot of different ways to save money depending on what systems you invest in.
For instance, the Federal Government has extended residential energy efficiency tax credits through 2032, thanks to the Inflation Reduction Act. This means that you can get some serious tax credits for investing in energy-efficient heat pump systems–especially ENERGY STAR-certified systems. If you’re considering this upgrade, check out expert tips for purchasing a heat pump to make the most of your investment.
In addition to federal and state programs, regional utilities often offer rebates for smart thermostats and HVAC upgrades. Programs like Southern California Edison’s provide up to $120 rebates for energy-saving devices, incentivizing more eco-friendly installations.
It gets better! California has its own tax credits that are offered to systems based on other information. Sometimes this tax credit can vary per ton of air that you’re cooling (if you’re investing in commercial AC), or it can be for a new residential heat pump system.
The Inflation Reduction Act includes new rebate initiatives rolling out in 2024, with potential rebates up to $14,000 for income-eligible households. These rebates, in combination with federal credits, significantly reduce costs for heat pump installations.
Call your local town clerk or even join a town hall event and ask your local government if they can give you specifics on your tax credit availability. It might be the perfect time to invest in a heat pump!
Why a Heat Pump?
You might be asking yourself, “why are heat pumps gaining all of this attention?” Well, there’s a good reason for it.
Heat pumps run on electricity, which is set to become increasingly available and affordable as the energy grid evolves with renewable sources. If you’re thinking of upgrading, learn why a heat pump is worth installing for both its long-term cost savings and environmental benefits. Since local governments are investing more in our power grid, electricity is going to become more widely available and hopefully cheaper over the next few years.
Heat pumps not only use less energy but also run as heating and cooling systems. They keep your home comfortable year-round without the same carbon footprint as gas-powered appliances. If you’re looking for a sustainable solution, see how matching a heat pump with solar energy can take your energy efficiency to the next level.
Contact Comfy Heating & Air Conditioning Inc. for more information on tax credits and rebates that apply to you!