“Do I Qualify for Section 25C Federal Tax Credit?”
Recent legislation has made this nonbusiness energy property credit available for 2018, 2019, and 2020.
What is the Section 25C federal tax credit?
Taxpaying homeowners can receive a federal tax credit up to 10% of their purchase of qualified energy efficiency improvements to their main home. The maximum credit permitted is $500. A tax credit reduces the tax owed, dollar for dollar.
What qualifies for the tax credit?
Building envelope components such as any insulation material or system that is specifically and primarily designed to reduce heat loss or gain of a home when installed in a home. This includes insulation, vapor and air retarders, and air sealants.
Does the tax credit apply to the cost of installing insulation?
The credit does not include the amounts paid for the installation of materials.
How does a taxpayer get the tax credit?
Your customers can use the latest version of IRS Form 5695 to apply for the tax credit.
Is there a lifetime limitation on this tax credit?
Currently, there is a tax credit limit of $500 for all tax years after 2005. Therefore, if the total of any of these tax credits taken in previous years, after 2005, is more than $500, taxpayers generally cannot take the credit in 2019 and in 2020.
Must tax filers attach to their tax return a manufacturer’s certification that a building envelope component is an eligible component for the tax credit?
For purposes of taking the tax credit, taxpayers can rely on a manufacturer’s certification in writing, but do not have to attach it to their return. Insulation manufacturers can present a certification to insulation contractors stating that its product is an eligible building envelope component for the tax credit.
GET A FREE HOME ENERGY ASSESSMENT
A Home Energy Assessment is the first step to assess how much energy your home consumes and to evaluate what measures you can take to make your home more energy efficient. An assessment will show you problems that may occur, when corrected, and save you significant amounts of money overtime.
Lower energy bills and increased savings. A detailed report will prioritize cost-effective measures that can be improved upon to ensure homes run more efficiently.
Increased home resale value & marketability. For every $1 decrease in annual energy costs, the market value of a home increases by $20 according to a study published in the Appraisal Journal. By decreasing your home energy costs by $300 per year, the value of your home increases by $6,000.
Home Energy Assessments are a wise investment. Investing in energy savings measures can earn a return of around 16% per year after, taking into account the money spent on the improvements.
Please use the customer form listed below to schedule your home energy assessment along with a preferred date, date and time and one of our estimators will contact you with in 24 hours to confirm your appointment.
GET YOUR FREE INSULATION QUOTE
