Those Energy Tax Credits That Expired? Well, They're BackThis year, environmentally-conscious homeowners who are motivated to file for tax credits are in luck. The end of the crisis known as the fiscal cliff is not the only benefit Congress produced on January 1, 2013, with the passing of the American Taxpayer Relief Act. This significant piece of legislation also addressed important, incentive-based tax provisions related to energy efficiency in the form of energy tax credits.

Now, as a homeowner you can still make energy-efficient improvements to your heating and air conditioning installations or anything related to your HVAC system while taking advantage of the recently reinstated energy tax credits that reward you for doing so. The official name of this IRS incentive is the 25C tax credit and includes water heaters, electric heat pumps, bio-mass stoves, central air conditioners, furnaces, boilers and any other items that are considered high-efficiency units and meet Energy Star requirements.

The 25C tax credit also includes home improvements such as exterior doors and windows (or skylights), insulation labor and materials, metal roofs with pigmented coats or cooling asphalt roofs. Up to $500 in tax credit is available for homeowners that qualify with high-efficiency units and energy-saving improvements.

These recently revived energy tax credits had been set to expire or had already ended their time-frame for when they would have been applicable. With the reinstatement of these financially beneficial provisions, federal energy efficiency tax credits will be available until the end of 2013.

By making typically expensive energy-efficient products and upgrades more affordable, taking advantage of the 25C tax credit will help you save money in the long run with lower utility bills. Be sure to consult your certified accountant when filing for the credit with IRS Form 5696, which you will need to complete in order to benefit from making a qualifying energy-efficient improvement or addition to your home. 

Having served the central Arizona area for over 22 years, Wolff Mechanical is happy to answer any questions you may have about making improvements with the energy tax credits. Contact us today.

Our goal is to help educate our customers in the Phoenix Valley area of Arizona about energy and home comfort issues (specific to HVAC systems). 

Image courtesy of Shutterstock