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Understanding the 25C Energy Efficient Home Improvement Tax Credit

At Barron, we’re here to help you navigate the 25C Energy Efficient Home Improvement Tax Credit, which makes upgrading your home’s energy efficiency more affordable. Here’s what you need to know about this valuable incentive:

Save Big on Energy Upgrades

  • Up to $2,000 in Savings: Install a qualifying heat pump and save up to $2,000 with the 25C tax credit.
  • Additional Upgrades: Use the credit for other energy efficiency improvements in your home.

Who Qualifies?

  • Home Location: Your home must be located in the United States.
  • Existing Homes: The credit applies to improvements or additions to existing homes, not new constructions.
  • Primary Residence:
    • Your home must be where you live most of the year.
    • Landlords or property owners who don’t live in the home aren’t eligible.

Will Your Heat Pump Qualify?

Determining eligibility can be tricky, but that’s where Barron’s expertise comes in:

  • Efficiency Standards: Heat pumps must meet or exceed the highest efficiency tier set by the Consortium for Energy Efficiency (CEE).
  • Ask the Experts: We’ll help you determine if a heat pump is the right choice for your home and whether it qualifies for the tax credit.

How to Claim the 25C Tax Credit

  1. Keep Documentation: Save invoices and receipts for your heat pump installation or other qualifying upgrades.
  2. File IRS Form 5695: Submit this form with your federal tax return to claim the credit.
  3. Annual Savings: There’s no lifetime cap, so you can make additional upgrades each year and claim credits for other qualifying improvements.

Why Choose Barron?

The 25C tax credit is a great incentive to install a heat pump or transform your home’s energy efficiency with other upgrades. Our Home Performance Experts are here to help answer any questions you may have and guide you through the process.

Contact us today to learn more or Book Online to schedule your heat pump installation!

Proudly Serving the I-5 corridor from Blaine to Marysville, Oak Harbor to Concrete, and the San Juan Islands

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