Unless you’re a CPA, odds are better than even that you don’t greet the onset of tax season with a sense of joyous anticipation. For that reason, energy efficiency HVAC upgrades that add energy efficiency save money in more ways than one; you’ll save on your energy bills, and energy efficiency incentives in the form of state and federal HVAC tax credits for Sacramento homeowners are another great reason to get in touch with Ace Plumbing Heating and Air Conditioning.
Take the Pain out of HVAC — And Taxes
Federal HVAC and Plumbing Tax Credits
Non-Business Energy Property Tax Credits were in force from 12/31/2017 through 12/31/2021. They provided a tax credit for 10% of cost up to $500, or a specific amount from $50-$300, but this expired on December 31, 2021; furthermore, they applied to installations in the homeowner’s principal residence (therefore excluding rental properties and new construction) by December 31, 2021. Covered installations included:
- Ductless split systems with a SEER greater than 15 for heating, and greater than 16 for central air conditioning
- Package systems with a SEER greater than 14
- Gas, oil, or propane-fired tank water heaters with an AFUE greater than 95
- Gas, propane, or oil-fired furnace installations with an AFUE greater than 95
- Additional credits available for energy-efficient doors, windows, skylights, insulation, roofs, and renewable energy
California HVAC Tax Credits
While the clock has run out on available federal incentives, a number of California energy incentives remain on the table. The requirements are much the same here as they are for the federal law, and Ace will help you navigate the available incentives so you can make the most of them.
Are Sacramento HVAC Installations Cost-Effective?
As we write this, the available tax credits have expired. With that being said, credits and rebates are only one part of the cost equation. After all, your tax credit will not pay for your system by itself. With that in mind, it’s important to look at the big picture, especially if you’re looking at the tax implications for coming years.
- Repair history: If your repair bills are mounting, you’ll soon reach a point where replacement is the most cost-effective choice.
- System age: It’s a simple fact that older systems weren’t designed to today’s standards; the problem is compounded by a loss of efficiency as time passes.
- Energy savings: Newer systems do more with less electricity and gas use than before. That, in turn, helps you save money from month-to-month.
- Regulations: New tax credits are working their way through Congress, and the last time they were renewed, they were made retroactive to cover the gap between tax years. Because of this, we suggest keeping your paperwork somewhere accessible, and talking to your tax professional about filing an amended return if new credits go into effect.
Trusted Heating and Cooling Service and Advice in Sacramento
It should go without saying, but we’re home heating and cooling professionals, not accountants. The tax implications of any home improvement project should be discussed with your tax professional, while sourcing the best heating and cooling solutions for the Sacramento area is something to take up with Ace Plumbing Heating and Air Conditioning. To get started, call us at (916) 455-4548. You’ll get a free written estimate, advice you can trust, and a quick installation that will help you reap savings and comfort for years to come.