25C Tax Credit: Save on HVAC, Electric & Plumbing Upgrades

If you make qualified eco-friendly upgrades to your home after Jan. 1, 2023, you may qualify for a tax credit of up to $3,200.

What is the 25C Tax Credit?

The Federal Govt’s Inflation Reduction Act (IRA) has extended tax credits and introduced cash rebates to North Carolina area homeowners who upgrade their home comfort equipment to more energy efficiency models.   A key aspect affecting Plumbing, Electrical, and HVAC is the Energy Efficient Home Improvement Tax Credit (25C) which offers cost-caving options for purchasing energy-efficient appliances or making home improvements to enhance energy efficiency.

What does this mean for homeowners?

Because the 25C tax credit encourages more eco-friendly home upgrades, it lets you save money by reducing the total cost of those through a credit you file on your taxes. Until 2032, homeowners can save money with these federal tax credits of up to $3,200 annually.

Here are home upgrades that qualify for the 25C Tax Credit:

How can Streamline Services help?

Streamline Services has been installing heat pumps and tankless water heaters for decades, and we are excited to help our customers find an eco-friendly solution. Ask your technician about eco-friendly, energy-efficient options that could qualify for the 25C Tax Credit.

Is there a lifetime limit on the credits?

The credit has no lifetime dollar limit. You can claim the maximum annual credit every year that you make eligible improvements until 2033. Read more about the Energy Efficient Home Improvement Credit

How does a homeowner receive the 25C tax credit?

Homeowners who have purchased and installed qualifying equipment can claim the tax credit when filing their taxes with the IRS using the Residential Energy Credits tax form (form 5695) Streamline Services is not a licensed tax professional and cannot provide tax advice. Consult your tax advisor regarding your eligibility for any tax credits.

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