Utility and energy costs continue to rise, causing many homeowners unnecessary stress, worry, and discomfort. As energy costs rise, homeowners are forced to reduce their consumption, and in hot climates this often means cutting back the air conditioning on sweltering days. If you are struggling with the rising cost of your home’s heating and cooling needs, it may be time to look into more energy efficient cooling and heating options. Newer HVAC units not only run more efficiently and save you money, but many also provide owners with a tax break, saving them even more. Let’s look at some of the ways HVAC owners can benefit from updating their HVAC unit and tax breaks.
Energy Savings From Efficiency
Apart from a federal tax break, switching to a newer, more energy efficient HVAC unit can save you on your energy bills in the long run. The average upgrade will pay for itself over the course of about ten years in energy savings. This may not sound like much, but it can really make a difference in the long run, and if you are looking to replace an old unit anyway, you’ve got nothing to lose and only money to gain each month!
Tax Credits
In addition to the savings you will have by switching to a more energy efficient unit, certain HVAC units can actually give owners a break on their taxes. Energy Star certified units not only save homeowners money monthly on their utility bill, but also qualify for a tax break for 10% of the cost of your unit up to $500! This credit is for qualified units purchased in 2015 or 2016 in existing homes (new construction and rental properties do not qualify). For homeowners that are considering replacing their existing units for any reason, it would be wise to look into Energy Star certified models that qualify for this year’s tax credit. Not all units qualify, so make sure to discuss this with whoever is installing a new unit for you! If you’ve already replaced your unit in 2015 or 2016 with a qualifying unit, you are already eligible for a tax credit, you just need to submit proof when filing your taxes.
At Cool Breeze, we are experts in our field, and our goal is to keep you comfortable in your home while saving you as much money as possible. Our team is up to date on current tax incentives, and can help you determine if a new energy efficient model is the right fit for your home. And while a tax break of up to $500 may not be a huge savings, that in combination with the monthly utility bill savings could be significant over the course of five to ten years. If you are in need of a new unit urgently and want to make the wisest decision, or if you are carefully weighing your options in hopes of saving some money and reducing your utility bills, give us at Cool Breeze a call today!