Efficiency Rebates and Tax Credits: What You Need to Know
We’re fortunate to have access to rebates and tax credits that can help offset the costs of projects aimed at improving our homes’ performance.
However, navigating these programs can be complicated, with evolving timelines, eligibility requirements, and paperwork. At Eco Performance Builders, we stay on top of these details to manage and secure rebates for our customers. We plan and process all of the rebates for you.
Current Rebates and Tax Credits in Our Service Area
TECH Clean California
HVAC Rebate: $1,000 – $2,000
This rebate is available when replacing a gas space heating appliance with an HVAC heat pump system, or multiple heat pump systems. The rebate amount varies based on the storage capacity of the water heater, and the type of refrigerant used. Or, if one has a pre-existing central air conditioner that is also being replaced then it would be $1,500 per system, up to a maximum of $3,000. Not all heat pump equipment types are eligible. Only approved contractors, like Eco Performance Builders, can process and handle the paperwork for this rebate.
Heat Pump Water Heaters
TECH/SGIP Heat Pump Water Heater Rebate: $1,100 – $3,300
This program is starting soon. To qualify, you must replace a gas water heater with a heat pump water heater. The water heater must meet specific size requirements based on the number of bedrooms and bathrooms in your home, according to California plumbing code. Additionally, the PG&E account holder must be on a time-of-use plan and agree to connect the water heater to the utility rate schedule to avoid operation during peak hours, leading to energy savings and environmental benefits. The rebate amount varies based on the storage capacity and refrigerant type of the water heater.
Single Family Inflation Reduction Act: HEEHRA Rebates
$45 million in rebates for single family households is available for heat pump HVAC equipment. Income-qualified California residents can receive a HEEHRA rebate through TECH Clean California of up to $8,000, depending upon household income.
To receive this stackable rebate, customers work with a TECH Clean California-certified contractor trained in HEEHRA rebates. TECH California contractors can help identify other available rebates to help reduce the cost of the heat pump project.
Mid-Stream Heat Pump Water Heater Rebate: $1,000
CA Energy Smart
Homes Rebate – $3,750 – $7,900
This program is ideal for homeowners electrifying their entire house. Key eligibility criteria include eliminating all gas appliances by the project’s end and receiving electricity from PG&E. Additionally, the project must include either a heat pump water heater or a heat pump HVAC system. For more details, visit their website.
Tax Credits
25C IRA Tax Credits – Heat Pumps: $2,000 Annual Cap
This tax credit covers 30% of labor and material costs (up to $2,000 annually) for Energy Star-rated HVAC heat pump or heat pump water heater projects. Homeowners must claim this credit when filing their taxes for the year in which the work was completed.
25C IRA Tax Credits – Insulation & Envelope Work: $1,200
This credit applies to insulation, sealing, windows, and other envelope-related improvements. It covers 30% of material costs, up to a cap of $1,200.
Schedule a Free Assessment
Your comprehensive assessment begins with an in-depth call with one of our home efficiency experts, where you can ask all your questions. During our conversation, we’ll ask about your goals, the current setup of your home comfort system, and any time and budget constraints you might have. If you want to move forward with a home evaluation, we can schedule it during your assessment.
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