Is your Bakersfield home energy efficient? If not, you’re missing out. Energy-efficient homes are better for the environment, offer lower energy bills, and, best of all, allow you to take advantage of tax savings. Yes, you read that correctly — energy-efficient HVAC systems grant you federal tax credit incentives, allowing you to save money while doing the right thing for your home and the environment!
When it comes to these tax credits, however, many homeowners are unsure where to start or how to claim them. Today, Gundlach’s is here to help you navigate the tax savings available to you. Keep reading for everything you need to know, then contact us to start enjoying energy savings!
Residential Clean Energy Credit
Have you heard of the Residential Energy Efficient Property Credit? It was recently renewed and extended through 2034 under the Inflation Reduction Act, and it’s now known as the Residential Clean Energy Credit. The credit is worth up to 30% of the cost to install energy-efficient equipment and systems, and this lasts until 2032. In 2033, it will be worth 26% of your costs, and in 2024, it’ll be worth 22%.
The Residential Clean Energy Credit is awarded to those who installed energy-efficient systems at their primary residence, and the systems must meet specific standards to be considered eligible.
Energy Efficient Home Improvement Credit
You may be familiar with the Nonbusiness Energy Property Credit, but it expired at the end of 2021. However, like the Residential Clean Energy Credit, it was renewed under the Inflation Reduction Act, and it’s now known as the Energy Efficient Home Improvement Credit. As of 2022, this credit is worth up to 10% of the costs required to install some energy-efficient HVAC equipment, like a furnace installation or a new central air conditioning system. Starting in 2023, however, the credit will be worth up to 30% of eligible installation costs. The credit won’t expire until 2032, so homeowners are encouraged to take advantage of it over the next decade.
The Energy Efficient Home Improvement Credit has similar eligibility requirements as the Residential Clean Energy Credit. Homeowners must install their energy-efficient systems on their primary residence, and the credit only applies to equipment that meets the proper standards.
Utility Rebate Programs for Energy Savings
The Residential Clean Energy Credit and Energy Efficient Home Improvement Credit are great ways to enjoy federal tax savings. While California does not currently offer state tax credits for energy efficiency, some utility companies throughout the state have rebate programs in place to reward homeowners. Pacific Gas and Electric, for example, offers rebates between $50 to $120 for Bakersfield residents using smart thermostats to control their heating and cooling.
How To Take Advantage of These Tax Credits and Savings
Now that you know about these impressive federal tax credits and utility rebate programs, you may wonder how you can take advantage of them. Fortunately, Gundlach’s is here to help! We specialize in heating and air conditioning systems, and our team can work with you to upgrade your current system to a more energy-efficient one. Whether you want to upgrade your furnace, water heater, central AC, heat pump, or another component of your HVAC system, you can rely on us to get the job done right so you can start enjoying increased cost and energy savings.
An energy-efficient home is a closer step to a lower carbon footprint and energy bills, and it opens the door to several tax credit benefits. Contact Gundlach’s today, and see how we can help you achieve energy efficiency in your Bakersfield home!