Those 25C Energy Tax Credits: the Time to Use Them Is Running Out

If you’ve been putting off one or more energy-efficiency upgrades, now is the time to get going. The sizable 25C energy tax credits are set to expire on Dec. 31. Delay much longer, and you’ll lose these incentives.

You can qualify for tax credits equaling 10 percent of your cost–up to $300–if you install a high-efficiency heat pump, air conditioner or water heater. You can qualify for a 10 percent credit–up to $150–if you install a high-efficiency furnace or hot water heater. Once again, here’s a look at the tax-incentive specifics:

Air Conditioners

Cooling your home can account for 30 percent or more of the energy your home consumes in the summer. An energy-efficient air conditioner can go a long way toward helping you control those cooling costs.

  • A split system must have a minimum seasonal energy efficiency ratio of 16 and an energy efficiency ratio of 13 or better.
  • A package system must have a minimum SEER of 14 and a minimum EER of 12.

Air-Source Heat Pump

An air-source heat pump must have a SEER of at least 15, an EER of at least 12.5 and a heating seasonal performance factor of at least 8.5.

Furnaces and Hot-Water Heaters

If your furnace isn’t working properly or is more than 10 years old, this is an ideal time to upgrade. Gas furnaces and gas hot water heaters, as well as propane furnaces and hot water boilers and oil furnaces and hot water boilers can qualify for a credit if they meet or exceed an average fuel utilization efficiency of 95 percent.

To take advantage of one or more credits, you’ll need to fill out Internal Revenue Service Form 5695. Your HVAC professional should give you the required manufacturer’s certification statement.

For more information on the tax credits and how to take advantage of them, contact Balance Point Heating & Cooling. We proudly serve homeowners throughout the Fort Collins area.

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