In 2025, California residents can claim federal energy tax credits (25C and 25D) for high-efficiency, Energy Star-certified appliances and home improvements. Top qualifying upgrades include heat pumps (up to $2,000 credit), heat pump water heaters, central air conditioners, biomass stoves, electric panel upgrades, and insulation, offering up to 30% of installation costs.
Energy-efficient appliances use less electricity and water, which translates into lower utility bills. For example, an energy-efficient refrigerator uses advanced cooling technology that requires less power, and a modern washing machine can clean clothes effectively while using less water.
When you shop for a new appliance, look for the ENERGY STAR® label. ENERGY STAR products usually exceed minimum federal standards by a substantial amount. The ENERGY STAR logo is on all qualified products that meet specific standards for energy efficiency.
Heat Pump rebates are increasing for equipment purchased and installed on or after November 1, 2025. Heat Pump Water Heaters will be eligible for up to $2,500* per unit and Heat Pump HVAC systems will be eligible for up to $2,500* per ton. *Rebate amount is based on gallon capacity/UEF, or SEER2/HSPF2 rating.
If you make qualified energy-efficient improvements to your home after Jan. 1, 2023, you may qualify for a tax credit up to $3,200. You can claim the credit for improvements made through December 31, 2025.
The 2025 Energy Code expands the use of heat pumps in newly constructed residential buildings, encourages electric-readiness, strengthens ventilation standards, and more. Buildings whose permit applications are applied for on or after January 1, 2026, must comply with the 2025 Energy Code.
Can You Write Off a New Washer and Dryer on Taxes? No, washers and dryers do not qualify for an energy tax credit, but ENERGY STAR-certified electric heat pump clothes dryers may be eligible for rebates under the High-Efficiency Electric Home Rebate Program in the future.
List of ENERGY STAR Energy Efficient Products
5-star rated Electrical Appliances. The most energy-efficient appliances have five stars, as determined by the BEE star rating system. Let's consider a 5-star-rated refrigerator, for example. The rating parameter of a refrigerator is its comparative energy consumption (CEC).
The 10 home appliances that consume the most energy
For the 2025 tax credit (Energy Efficient Home Improvement Credit), central air conditioners need SEER2 ratings of at least 17.0 (split systems) or 16.0 (packaged systems) and corresponding EER2 minimums (12.0 for split, 11.5 for packaged) to qualify, with a maximum $600 credit; heat pumps have separate, generally higher, SEER2/EER2/HSPF2 requirements, often around 15.2 SEER2 for split/packaged or 16 SEER2 for non-ducted, plus other efficiency metrics for up to a $2,000 credit.
You can claim a deduction for a device you buy and use for work, such as a:
When shopping for an appliance, it's easy to recognize the ENERGY STAR® label that identifies qualified products. This label means that the product passed stringent standards set by the U.S. Department of Energy. Additionally, manufacturers are required to display their products' test results on the ENERGY STAR® label.
A 2-star fridge may seem affordable upfront, but it consumes more electricity—leading to higher bills. On the other hand, a 3-star model offers better energy savings and a lower carbon footprint, making it a smarter investment over time.
About ENERGY STAR
A recent tax law ("One Big Beautiful Bill") introduced a new $6,000 bonus deduction for Americans aged 65 and older, available for tax years 2025-2028, reducing taxable income, not the tax itself, with income phase-outs starting at $75,000 MAGI for singles and $150,000 for joint filers. This deduction adds to existing standard deductions, provides up to $12,000 for couples, and requires a Social Security number and filing status other than Married Filing Separately.
California Civil Code 3040 limits how much health insurance companies can claim back (subrogate) from your personal injury settlement, restricting their lien to the lower of either the actual amount paid for care or, for capitated plans, 80% of usual charges, with further reductions if you have an attorney or are partially at fault, protecting victims from unfair deductions by setting caps on their recovery.
What will happen to California in 2025? Alexa seems to think it isn't only Florida that's in trouble — when Buckhouse asked "what will happen to California in 2025?" she responded that on Aug. 4, 2025, at 3:05 p.m., the westernmost state will experience a 9.6 magnitude earthquake when the San Andres fault shifts.
Heat pumps are just as reliable as gas boilers. The technology they use is quite simple, so they won't need much maintenance beyond an annual service by an engineer. And the average lifespan is even longer than for a boiler. A heat pump you install today should still be working perfectly well in 20 years' time.