Are you a homeowner looking to upgrade your home while saving money on energy bills? Then you should know about the 25C Tax Credit. As a resident of Texas, you can take advantage of this federal tax credit that incentivizes energy-efficient home improvements.
What is the 25C Tax Credit?
The 25C Tax Credit motivates homeowners to make energy-efficient upgrades to their homes by offering a tax incentive.
Introduced in 2006, this tax credit was initially set to expire in 2020, but the Inflation Reduction Act has extended it until December 31, 2023.
What Home Improvements Qualify?
![A worker feeds wires through newly installed insulation in a home.](/wp-content/uploads/2023-03-14b-Upgrade-Your-Home-and-Save-Money-with-the-25C-Tax-Credit-480x477.webp)
Many energy-efficient upgrades qualify for the 25C Tax Credit, including insulation, air sealing, windows, doors, roofing, and HVAC systems.
Homeowners can receive a tax credit that is a percentage of the cost of the upgrade, up to a maximum of $500.
How to Claim the Credit
To claim the 25C Tax Credit, homeowners must fill out Form 5695 and submit it with their federal tax return. They must also provide documentation of the costs, such as receipts and records of the upgrades.
Benefits of the Credit
The 25C Tax Credit offers numerous advantages for homeowners, including:
- Lower Energy Bills: Energy-efficient upgrades can lower energy bills, resulting in long-term savings.
- Increased Comfort: Improve your home’s comfort by reducing drafts and temperature fluctuations.
- Environmental Benefits: Reduce your home’s carbon footprint, making it more environmentally friendly.
- Increased Home Value: Increase your home’s value, making it more attractive to potential buyers.
Take Advantage of this Extension
With the 25C Tax Credit extension, there has never been a better time to upgrade your home with energy-efficient improvements. Whether you want to upgrade your HVAC system, add insulation, or replace your windows, now is your time to benefit from these tax incentives. Doing so will save money on your energy bills while positively impacting the environment.
If you need help determining which energy-efficient upgrade is suitable for your home, Empire Heating & Air is here to help. As a specialist in HVAC installation, we can work with you to determine the ideal upgrade for your home by maximizing both your energy savings and tax credit. Call us today at (682) 233-3367 to speak with one of our professionals!