Federal Tax Credit 25C for Home Improvement Reinstated

Are you thinking about upgrading your HVAC system? Home improvements can be expensive, but it’s always helpful when the government decides to assist you through tax incentives. The federal tax credit 25C option is a great opportunity for many homeowners to improve their home heating and cooling systems in Arlington VA. There are a few basic points to keep in mind.

Who Is Eligible for the 25C Tax Credit?

A homeowner may be able to claim the federal tax credit 25C if eligible equipment has been installed in the given tax year at his residence. Rental property installations aren’t eligible, but second homes are included as valid locations for placing equipment into service. It’s important to recognize that there is a lifetime cap of $500 for a homeowner claiming the credit. If you’ve taken advantage of this opportunity in previous years, your credit may be limited. 

What Equipment is Eligible for the 25C Tax Credit?

The systems that can be used for federal tax credit 25C purposes are designated each year. Many of our customers mistakenly think that any appliance or system with an Energy Star label should work, but this isn’t true. It’s important to work with a professional to choose eligible HVAC equipment so that you are certain that you are going to be able to take advantage of the incentive. Our contractors are committed to keeping up with these developments each year so that they can provide the most relevant options to our customers.

How Much Can I Save?

Your potential savings with the credit is going to vary based on the type of equipment. Electric HVAC equipment is capped at a maximum of $300. Gas, propane and oil furnaces along with hot water boilers have a maximum credit of $150. You can earn a maximum credit of $500 through the years of the credit’s availability.

How Long Will this Tax Incentive Be Available?

The details of this incentive are updated annually. The federal tax credit 25C in Arlington VA has been reinstated for the current year. Future years hinge on decisions at the federal level, and there aren’t any guarantees that the energy tax credit will continue to be provided. If you have been thinking about updating your equipment for better efficiency, this incentive is available for systems placed in service during 2013. We can help you evaluate your home’s needs to examine the most appropriate options.

Whether you decide to make use of the federal tax credit 25C opportunity or not, we can assist you with finding efficient equipment that will improve your energy efficiency in the home. Today’s systems are much more affordable to operate, and you can recover your investment rather quickly through reduced energy expenses. Give us a call at Brennan’s Heating and Air Conditioning to learn more about your options for improving your HVAC system.