- By Hugh Wolf
- In Uncategorized
The 25 C Energy Efficient Tax Credit
25 C Energy Efficient Tax Credit
Customers who install certain home energy efficiency products or equipment in 2016 may be eligible for a federal tax credit. Through the 25C tax credit, customers can get a tax credit worth up to 10% of the product cost for improving home performance – or a specific amount from $30-$300 – up to $500 in total. This tax credit is effective for products and equipment installed through December 31, 2016.
Who is Eligible?
Owners of existing homes are eligible for the credit, for their own residence.
*Important: New homes and rental homes are not eligible for the 25C tax credit.
The following energy efficiency products qualify for the 25C tax credit:
- Bio Mass Stoves
- Air Source Heat Pumps
- Central Air Conditioning (CAC)
- Gas, propane, or Oil Hot Water Boiler
- Insulation
- Roofs
- Water Heaters (non solar)
- Windows, Doors and Skylights
*Important: The 25C tax credit has a lifetime cap of $500.
How Do I Apply?
Customers must keep receipts and a copy of the Manufacturer’s Certification Statement (a signed statement from the manufacturer certifying that the product qualifies for tax credit; usually available on manufacturers’ websites). These items should be kept on file (but not submitted to the IRS unless requested).
File IRS-5695 (available at www.irs.gov) with your taxes to claim the credit.
Product/equipment standards and tax credit amounts
*All products must come with a Manufacturers Certification Statement.
*Installation costs (labor, etc.) do not qualify for the 25C tax credit.
More information is available at http://www.energystar.gov/about/federal_tax_credits/ and http://energy.gov/savings/residential-energy-efficiency-tax-credit.
Disclaimer: This information is for educational use only – Eco Kong Incorporated does not provide tax advice. Customers should consult certified tax professionals or the IRS directly with specific tax questions.
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