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Helpful Tips for Customers Claiming the 25C Tax Credit for Energy Efficient Products

In December 2014, in a last-minute deal that included an extension of various tax credits, Congress extended the 25C tax credit for “nonbusiness energy property” -- but only through December 31, 2014 (so, as of now, the 25C credit is expired). The credit provides up to $500 of credit for homeowners who installed qualified energy efficient products and equipment in their homes during the 2014, for up to 10% of the product cost.

Here’s a point that is worth clarifying: Even though the credit was only renewed in December 2014, Congress made it’s extension of the 25C credit retroactive to the beginning of 2014.

Efficiency First doesn’t give tax advice, so customers should consult a tax advisor for questions. Here’s some info to help your company understand what customers need in order to qualify for the credit. Customers will need:

  • The amounts they’ve spent on qualified energy efficient products and materials.
  • 25C credits they have claimed each year since 2005 (the lifetime cap is $500 in tax credits, so their previous 25C tax credits need to be less than $500 in order to qualify for this credit in 2014)
  • A manufacturer’s certification statement, for their records (NOT to include with their tax filing)

A few other items to note:

  1. There are additional, lower limits for individual product categories, like windows and water heaters.
  2. Many tax preparation software tools include opportunities to enter information for the 25C tax credit. Customers can also file form 5695 with their taxes. More information here.

You can find more information about the 25C credit and information customers can use for filing it on the EPA website.

Categories: 25C  |  tax credits

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