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25C Tax Credit: Energy Incentives for Homeowners

25C Tax Credit: Energy Incentives for Homeowners

Did you know that you can get credit on your taxes for making your home more energy efficient? In addition to lowering your energy bills, adding energy-efficient air conditioners could help you save money on your taxes next year.

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Read on to learn what you need to know to decide if you want to take advantage of these tax credit opportunities. You can also simply give our West Palm Beach air conditioning contractors a call with any questions you may have!

What is the 25C Tax Credit?

The 25c tax credit is also known as the nonbusiness energy property tax credit. It gives you credit on your taxes when you invest in certain highly energy-efficient heating, cooling, and water-heating appliances. You can also get credits for installing energy-efficient doors and windows.

Since the tax credit only applies to certain heating and cooling apparatuses, make sure you work with our experts when installing a new air conditioner. We can make sure that you get one that will earn you this credit.

How Does the 25C Tax Credit Work?

If you install or have installed an energy-efficient air conditioner, you can claim this tax credit when you file income taxes. The best way to make sure you do this properly is to work with a tax professional.

Based on when you installed your new AC, you should be able to claim the following percentages:

  • 30% for air conditioners installed after December 31, 2016, but before January 1, 2020
  • 26% for air conditioners installed after December 31, 2019, but before January 1, 2023
  • 22% for air conditioners installed after December 31, 2022, but before January 1, 2024

You will need to fill out IRS form 5695 as part of your tax return. Note that you will not get this money back as a tax refund. It will reduce the amount of taxes you owe. If you don’t use any part of this credit, it will roll over to next year’s return so you won’t lose it.

Who Qualifies for the 25C Tax Credit?

Any homeowner who purchases qualifying equipment during a qualifying time period can claim this tax credit. If you have already used this tax credit, you may not be able to use it again. You may only be able to receive partial credit. You will need to talk to a tax advisor or specialist to find out more based on your situation.

Working with the AC Installation Pros

If you would like to install an air conditioner that qualifies you for the 25C tax credit, contact us or book online at Sansone Air Conditioning right away. We will get to you fast and make sure you get a new air conditioner that will help you save money on taxes this year!