While home and business owners seek ways to save money, the government seeks ways to improve air quality and reduce greenhouse gas emissions. There are various changes homeowners can make that can help save them money and reduce their impact on the environment, but these changes aren’t cheap.
The government has created a series of tax credits and rebates to make these changes more affordable. Many different options are available, including heating systems that home and business owners can use to increase energy efficiency and save money.
What Are Energy Efficient Tax Credits and Rebates?
The Energy Efficient Home Improvement Credit is one of many available tax incentives. This credit encourages home and business owners to make energy-efficient upgrades to their properties. Not all energy-efficient upgrades qualify for the credit; what is included is:
- Exterior doors and windows, including skylights
- Insulation materials
- Central air conditioning, water heaters, furnaces, boilers, and heat pumps
- Biomass stoves and boilers
- Home energy audits
The tax credits don’t give automatic discounts; instead, they reduce the amount you owe on your yearly taxes. The amount you get back varies depending on the product, with homeowners able to claim the equivalent of 30% back on the qualified expenses listed above. You can claim credits on all eligible improvements every year until 2033, as long as you are in the US and are improving an existing home or building; these credits do not apply to new construction.
There are also Home Energy Rebates. This includes Home Efficiency and Home Electrification and Appliance Rebates. The rebates aim to help homeowners and businesses save money on home improvement projects that can help you lower your energy bills.
Does Radiant Flooring Qualify?
Unfortunately, at this time, radiant heat flooring itself does not qualify for energy savings. That does not mean there are no savings opportunities at all. Here are three ways to get tax credits when installing radiant heat flooring:
Add Floor Insulation
Insulation is essential to creating an energy-efficient home and ensuring that any heating system you install works optimally. The better the insulation in your home or building, the less heat loss you will have, creating a more comfortable space and lessening the strain on your system.
One area that can get overlooked when insulating a home is the floors, but it is a critical area, especially if you’re installing radiant heating. Adding insulation to the floors will help prevent the heat from the floor from escaping through the subfloor, ensuring all of it goes into the room above. This also means it will help lower the overall operational costs. Floor insulation is also great for moisture control and soundproofing.
Rigid foam board insulation is an excellent option that is relatively thin but extremely effective at reducing heat loss.
Install a Smart Thermostat
Smart thermostats are WiFi-connected devices that give you more control over your heating. These thermostats make it possible to set schedules, create heating zones, and more. You can also control these devices from anywhere by installing the system’s mobile application on your phone or other smart device.
Smart thermostats can also have different sensors that allow for automation. Some detect weather conditions and can turn on automatically when a specified temperature is reached outdoors. All of these controls help ensure the most efficient use of your heating system, saving you hundreds.
Many energy companies offer up to $50 rebates on eligible smart thermostats.
Electrical Panel Upgrades
Electric radiant heat flooring can require upgrading or adding to your electrical panel to support the system and prevent short-circuiting. The tax credit covers the improvement or replacement of panel boards, sub-panel boards, branch circuits, or feeders as long as they meet the following requirements:
- They must be installed according to the National Electric Code
- Have a load capacity of no less than 200 amps
- And be installed in conjunction with or allow for the installation and use of:
- A qualifying energy efficiency improvement, or
- A qualifying energy property, such as a heat pump water heater, heat pump, central air, etc.
Why Still Choose Radiant Heat Flooring?
Despite radiant heat flooring systems not being directly eligible for tax incentives or rebates, they are a worthwhile investment. Radiant heat systems like those from Warmup, a leading manufacturer of radiant floor systems, offer so many benefits:
- Uniform Heat Distribution: Radiant heat flooring provides even heat distribution, eliminating cold spots common with other systems.
- Energy Efficient: These systems can run at lower temperatures, saving energy and lowering costs while warming the room to comfortable levels.
- Smart Thermostat: Smart thermostat compatibility means you can control your system from anywhere, create schedules and zones, and use various sensors to automate the system for the most efficient, cost-effective use possible.
- Better Aesthetics: With electric radiant heat flooring, the only visible part of the system is the thermostat, which often goes unnoticed. Or, in the case of the 6iE Smart Thermostat, it looks like a work of art, displaying your personal photo selection.
- Saves Space: Electric heated floors do not require large, bulky equipment, freeing up significant amounts of space for you to use in other ways.
- Health and Safety: Many of the common heating systems rely on air circulation to create heat. This moves around dust and allergens, which can be problematic for allergy sufferers and those with respiratory issues. It is also safer as they won’t burn you, eliminating the risk of injuries.
- Increased Property Value: Radiant heat flooring is a modern heating option gaining popularity and can greatly increase property value.
Getting Warm With Warmup
Saving money is on everyone’s mind, and one of the best ways to do this is by making your home more energy efficient. Many tax incentives and rebates help you make these changes, from increasing your home’s insulation to installing a new heating and cooling system.
A system like Warmup, combined with a smart thermostat and insulation, will provide the perfect amount of heat without cold spots while saving you hundreds in utility costs.
While these radiant heat flooring systems may not qualify right now, you can still qualify for some of these tax benefits from some of the work that goes into installing the system, like your insulation and electrical panel upgrades.
Contact us today to learn more about Warmup’s radiant heating systems and any rebates and incentives you may qualify for.