Exciting news for homeowners and upgrading their HVAC systems: The Internal Revenue Code Section 25C tax credit for qualified energy efficiency improvements has been retroactive beginning January 1, 2018 until Dec. 31, 2020.
What does this mean for you?
Homeowners will receive a credit against their taxes for an amount equal to the sum of:
|Maximum Tax Credit Available||Product Type||Efficiency Requirements|
|$50||Any advanced main air circulating fan||*See below|
|$150||Natural gas, propane, oil furnace or boiler||95% AFUE|
|$300||Split system air conditioner||16 SEER / 13 EER|
|$300||Split system heat pump||15 SEER / 12.5 EER / 8.5 HSPF|
|$300||Package air conditioner||14 SEER / 12 EER|
|$300||Package heat pump||14 SEER / 12 EER / 8 HSPF|
|$300||Package gas/electric||14 SEER / 12 EER|
*An advanced main air circulating fan is a fan used in a natural gas, propane, or oil furnace and which has an annual electricity use of no more than 2 percent of the total annual energy use of the furnace
Other Notes: A homeowner can claim the § 25C credit only for qualifying expenditures incurred for an existing home or for an addition or renovation to an existing home. This cannot be claimed on a new construction home. Labor costs may be included while calculating the § 25C credit for the onsite preparation, assembly, or original installation. In contrast, a homeowner may not include the labor costs for qualified energy efficient building envelope components. The credit is subject to a cap of $500.
For more information or to schedule a consultation, please contact us today.
Please note: This notice is not to be considered tax advice. See your tax professional to determine how these credits may apply in your circumstance.