Can You Beat the Tax Credit Deadline?
The tax credit deadline is just around the corner! But, Texas homeowners still have time to take advantage of big savings on home energy upgrades. Whether your home is brand new or a few decades old, updating older systems can make a big change on your Texas electricity bills and your comfort. With smart planning and a quick energy comparison, you can see which projects deliver the biggest return before the credits expire. Don’t let this chance slip by without at least looking into it.
HVAC Upgrades That Save Money
Most Texas homes rely on central HVAC systems that both heat and cool. If yours is more than 10 years old, upgrading to a new ENERGY STAR certified system could lower annual heating and cooling costs by 20% or more. Qualified systems installed by a licensed contractor before the tax credit deadline may be eligible for a federal credit worth up to 30% of the total cost, capped at $600. Hey, who doesn’t want free money at tax time!?
However, while replacing an older heating and cooling system can save a few hundred dollars per year, it will depend a lot on your home’s size and insulation. So, before you decide, compare your current system’s performance with upgraded models. These modern systems use better compressors and more efficient motors to maintain comfort while using less electricity. Seeing the difference in annual energy use and costs can help you pick the smartest option. People often pair them with smart thermostats to save even more.
Also, don’t make the mistake of thinking you have to replace your whole heating and cooling system. Perhaps your home only needs a ductless mini split in an enclosed garage or sunroom. These projects can qualify for the tax credit. And you won’t sweat indoors next summer!
Water Heater Upgrades That Pay Off
Water heating is often the second largest energy expense for Texas households. Replacing an outdated tank with an ENERGY STAR certified model can reduce water heater energy use by 10 to 50%. That’s a wide range, so make sure you evaluate several models before picking the one to install. Plus, your local plumbing company may have the inside track on sales and rebates which can add to your savings.
Electric heat pump water heaters, high-efficiency electric units, and certain gas fired systems all qualify for the federal tax credit, provided they meet efficiency standards and are professionally installed. Customers who make the switch before the tax credit deadline can claim 30% of their project cost, up to $2,000.
Don’t Miss Tax Credit Deadline
To claim these savings, your upgrade must be in place and ready to use before December 31, 2025. So, keep copies of receipts, efficiency ratings, and installation paperwork for your records. Texans who plan now can cut their energy bills and boost their home’s resale value in the process.
Want to save even more? Start by comparing energy rates and finding the best plan for your home at http://www.texaselectricityratings.com/electric-rates.