2016 Energy Star Tax Credits for Plumbing Upgrades
As San Diego plumbing contractors, we get to see the (slowly) recovering economy first hand. For a several years during and after the Great Recession, our days were filled with emergency repairs, the lifeblood of plumbers in tough economic.
Recently, clients have been calling about more than emergency repairs. These days, we have had a surge of calls about bathroom and kitchen upgrades, a sure sign that more of the population is employed and feels safer about their financial situations. The economists call this “pent up demand,” when consumers have gone without for a while and suddenly cannot tolerate going without anymore.
Still, San Diegans remain leery about overspending after going through the recession. The good news is that the federal government renewed the tax credits available for appliances purchased in 2016 (and retroactive to certain purchases from 2015) that provide residential energy efficiency have. That is because these ENERGY STAR products have been certified for saving energy and protecting the environment. So consider purchasing one of these products, and then do not forget to save your receipts, and file IRS Form 5695 to claim your savings.
ENERGY STAR Appliances
- Water heaters (non-solar)
Earn a tax credit amount of up to $300 when you purchase the certified electric and gas water heaters. Each of these water heaters meet the minimum requirements for energy efficiency, based on such factors as safety, hot water delivery, and warranty period. These water heater brands are quite specific, as each must have a thermal efficiency of at least 90%. For more information on the many brands/models that qualify, Google “Energy Star Water Heaters.”
- Air conditioners:
Receive a tax credit amount of up to $300 when you purchase one of the certified central air conditioning units. These certified units are proven to use 8 percent less energy than the other newer models. Keep in mind that these central air conditioners require a blower motor, which is generally a part of the furnace, to transfer the cool air through the ducts. Therefore, if your furnace was purchased more than 15 years ago, then your system will not perform to its maximum efficiency.
- Electric Heat pumps (air source):
Buying an ENERGY STAR certified electric heat pump will result in a tax credit of up to $300. These particular heat pumps are ideal for the moderate climate of San Diego, and use 5% less energy than other newer models. If it is warm outside, the electric heat pump will remove heat from your home. Conversely, if it is cold outside, the heat pump extracts the heat from outside, and transfers it to the inside of your home.
- Biomass stove
Purchasing a Biomass stove will garner a tax credit of up to $300. Biomass stoves are wood stoves that can burn up plant-derived fuel (agricultural and wood waste, grass, manure, fibers, for example), to heat up either a home its water. The stoves that qualify must meet the 2020 Environmental Protection Agency clean air standards, and provide a thermal efficiency rating of at least 75%. Because Energy Star does not currently provide a list of Biomass stove brands that qualify for the tax credit, be sure to ask for a Manufacturer’s Certification Statement when making your purchase, which is a signed statement from the manufacturer certifying that the product or component qualifies for the tax credit.
TEAM PERRY Helps You Save All You Can
If you want to know more about these tax-credit energy efficient appliances for your own home, but you are confused as to the best products, let TEAM PERRY help you decide what is best for your particular needs. Contact us at 619-472-2112, and one of our expert technicians will help you determine the best ways to save money through an ENERGY STAR tax credit. Check out our website at www.perryplumbing.com for even more ways to save through our everyday plumbing discounts, and see what other San Diegans say about our professionalism, our courtesy, and our affordability. The Better Business Bureau gave us not only an A+ rating but their coveted Torch Award for outstanding marketplace ethics.