Installing a new HVAC system can be expensive, but you do not necessarily need to shoulder the full burden of paying for your new heating and cooling system. The 25C Federal Tax Credit can provide some assistance when you want to purchase a new HVAC system.
What Is the Tax Credit?
The 25C Tax Credit is a federal credit that applies to individuals who put in a specific type of furnace, heating and cooling system, or even a water heater. The goal of the credit is to increase energy efficiency within the home by putting in appropriate HVAC systems that will reduce your energy consumption and improve the overall efficiency of your home.
What Qualifies for the Credit?
Even though the tax credit can apply to certain HVAC units, there are some limitations and qualification standards that you must consider before deciding on a specific system or unit.
The credit allows you to claim up to $500 for the changes. You can claim up to $300 for a water heater, air conditioner or heat pump. You can also claim up to $150 for oil furnaces and boilers. The credit allows you to claim up to $50 for a circulating fan.
For a unit to qualify, it must meet the SEER and EER standards. For a split unit, the SEER must be 16 or higher and the EER must be 13 or higher. Air conditioners must have a SEER of 14 or higher and an EER of 12 or higher.
Regardless of the system, you will need to select an option that has an appropriate SEER and EER standard.
Getting the Credit
Because you can claim up to $500 for a tax credit, it is possible to get assistance on the process of paying for a new HVAC system in your home. You will be required to provide proof of your purchase with the Manufacturer's Certification Statement and details regarding the amount that you paid. The credit will pay for part of the cost, depending on the specific unit that you selected.
We can help improve the efficiency of your home by installing a new HVAC system that qualifies for the 25C Federal Tax Credit. It can help you pay for a new system and reduce the cost of your heating and cooling bills over time due to the type of system that is required to qualify. If you have questions about what is covered in the tax credit, contact us today for more information.