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25C Federal Tax Credit Extension For Energy Efficient HVAC

On December 18, 2015 the U.S. House of Representatives and Senate approved extension of 25C federal tax credits through December 31, 2016 and retroactive for 2015. As part of the lifetime tax credit, you may be eligible if you have not filed before. For qualified heating, ventilation and air conditioning (HVAC) systems, water heating equipment or other energy-related improvements made to your property, you may be eligible to claim 25C tax credits equal to 10 percent of the installed costs (up to $500 maximum*). For qualified geothermal improvements, homeowners may be able to claim onetime HR 1424 tax credits equal to 30% of the total installed costs.

Subject to IRS regulations, tax credits apply as a direct reduction of taxes owed. The IRS has directed taxpayers to use Form 5695 to calculate and file for their residential energy credits. Customers should consult with a tax professional to fully understand how the tax credits may apply to you, what you can do to obtain one and for advice on and/or assistance with tax preparation.

As your local Trane Comfort Specialist, Norris Mechanical, LLC can help you choose the most efficient systems plus guide you to apply for any available tax incentives. Contact us today for a FREE consultation!

*Maximum 25C tax credit amount – is $500 and is available for respective products in the following amounts: $300 maximum for a qualifying air conditioning system, heat pump or packaged system, $150 maximum for a qualifying furnace, and $50 maximum for a qualifying product with an advanced circulating fan. The tax credit is effective for all qualified systems installed from 1/1/2012 through 12/31/2016, and is only valid to tax payers who own their home and use it as their principal residence.