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Homeowners who make certain energy-efficient improvements, including air sealing and insulation, may get a federal tax credit for 10% of cost of those improvements – up to $500.
The 25C Energy Efficiency Tax Credit is part of a proposed tax extender bill that the Senate Finance Committee began working on last week. Tax extenders are a handy way to offer relief to families, individuals, and small businesses without overhauling the entire tax code, and in recent years, Congress has passed tax extender bills retroactively. That means the credits were passed in December or January, rewarding taxpayers for past decisions but doing nothing to incentivize those decisions going forward.
Not only is Congress getting a jump on this year’s tax extenders by considering them mid-year, they’re also considering extending some credits through December 31, 2016.
“This is great news for homeowners,” says Richard Burbank, Evergreen's president. “The 25C credit makes it easier for people to afford energy efficient upgrades like insulation and air sealing, and extending it through next year makes it easier for people to plan for those upgrades.”
Though the credit has been in place for several years, it previously covered only the cost of certain materials. The proposed 25C extension would expand the list of eligible materials and allow installation costs to be included as an eligible expense.
Interested in planning an efficiency project that qualifies for the 25C tax credit? Contact us at 594-2244 to schedule your FREE energy consult, and sign up for our newsletter to follow the development of the tax extender bill.