With another summer underway, many Houston residents want to upgrade their HVAC and plumbing systems. The good news is that there are numerous tax credits and other ways to save on this essential equipment. The Inflation Reduction Act, federal rebate programs, and other discounts from state-based utility organizations can help your family enjoy a comfortable home without breaking the bank on energy bills.
In this blog post, Village Plumbing, Air & Electric experts discuss these money-saving options in more detail and explain why 2024 is the ideal year to invest in new HVAC and plumbing equipment.
How the Inflation Reduction Act Can Help You Save on HVAC & Plumbing Costs
The Inflation Reduction Act (IRA), signed into law in 2022 and expected to run through 2031, invests heavily in carbon reduction and clean energy initiatives. Under the IRA, Texas receives funding to develop sizable home energy tax credits and rebates for installing new energy-efficient systems.
If you’re a homeowner, you can enjoy significant savings thanks to the IRA. Upgrading to a ductless mini-split or heat pump system, for instance, yields some of the highest credits.
Which HVAC Rebates Are Available?
In addition to the IRA, various HVAC rebates are available for Texas homeowners.
Consider the following credits before deciding on a new system:
- ENERGY STAR® Geothermal Heat Pumps Tax Credit: Install a geothermal system in your home before January 1, 2034, and you may be eligible for a federal tax credit of up to 26% off eligible expenses.
- Energy Efficient Home Improvement Credit: If you opt for a qualifying energy-efficient central AC, heat pump, or boiler, you may qualify for a federal tax credit of up to $3,200.
- Residential Clean Energy Credit: If you invest in a geothermal heat pump, you may be eligible for a federal tax credit of up to 30% off qualified expenses.
We also recommend exploring the High-Efficiency Electric Home Rebate Act (HEEHRA) for low- and moderate-income households and the HOMES program for potential savings on your energy-efficient system.
Texas-Specific Rebates for HVAC Upgrades
Did you know many Texas utility companies offer credit programs to help homeowners save even more on their HVAC upgrades? For example, you can get over $300 per ton for a central AC installation through the Residential Energy Efficiency Rebate Program. It doesn’t hurt to ask your local energy company about their rebates, either.
Benefits of Upgrading to an Energy-Efficient HVAC System
Countless Houston families are ditching their old HVAC systems for an energy-efficient system. Here are some advantages of making this switch in your home:
- Lower energy costs: While some homeowners shy away from energy-efficient HVAC systems because of their upfront costs, these systems quickly provide a return on investment through lower monthly energy bills.
- Greater comfort: Today’s HVAC systems ensure you’re comfortable in every room of the house. Plus, with certain energy-efficient systems, like ductless mini-splits, you get room-specific heating and cooling.
- Improved indoor air quality: After installing an energy-efficient HVAC system, you and your loved ones will breathe cleaner, healthier air.
- System longevity: Many energy-efficient systems last longer than their counterparts, especially with regular maintenance.
Available Tax Credits & Rebates for Plumbing Upgrades
You can also take advantage of tax credits and rebates for plumbing upgrades. Some of the available credits include:
- ENERGY STAR® Water Heaters (Natural Gas) Tax Credit: You can save 30% of the project cost, up to $600, for ENERGY STAR®-certified gas storage water heaters and tankless water heaters. This tax credit is effective for products purchased and installed between January 1, 2023, and December 31, 2032.
- Energy Efficient Home Improvement Credit: You can get up to $600 for installing an energy-efficient natural gas, propane, or oil water heater.
- Inflation Reduction Act Tax Credits: Save 30% of cost, up to $2,000 per year by installing an efficient heat pump water heater or other efficient water-heating equipment.
Choose Village Plumbing, Air & Electric
for HVAC Replacements in Houston, TX
As you can see, there are ways to save on your next HVAC system, including tax credits and rebates. Another way is to contact our team at Village Plumbing, Air & Electric. We’ve been serving Houston for over 75 years and doing everything possible to keep our service affordable, like offering upfront pricing, financing options, and free estimates on HVAC replacements.
Contact Village Plumbing, Air & Electric to request HVAC or plumbing installation services in Houston, TX.
