Important information on the 25C Tax Extenders Bill of 2011
The tax credits known as 25C are extended through 2011, but at a significantly reduced value and with changes made to some of the qualifying equipment standards. The new tax credits begin on January 1, 2011 and last through December 31, 2011. The main difference is an eligible homeowner can claim 10% of the costs for the installation of qualified energy efficient improvements, capped at $500.
Under the new law the max a homeowner could claim on equipment is:
- $300 for a qualified central air conditioner and heat pump (HVAC and hot water equipments)
- $150 for a qualified furnace or hot water boiler
- $50 for any advanced main air circulating fan.
- $300 for Qualified hot water heaters
The new law will also increase the qualifying standards for hot water boilers, including natural gas, propane, oil furnaces, and oil boilers to 95% AFUE. The qualifying standards for natural gas furnaces and propane furnace remain at 95% AFUE.
The qualifying standard for central air conditioners and heat pumps, which were modified by the Stimulus bill in 2009, are not changed.
The major difference is the new law reinstates the lifetime credit caps of 2005. This means any homeowner who has claimed more than $500 in 25C tax credits since January 1, 2005, is disqualified from any further credits.
To read the Tax Provision of 2009 ending Dec 31, 2010, click here to be redirected to the IRS page.
To read the Original Tax Provision of 2005, click here to be redirected to the IRS page.
“This information is provided to you as a courtesy by Efficiency First staff and should not be considered tax or accounting advice. You are urged to consult an accountant or tax attorney if you wish to have certainty about your tax claims.”
Copyright © 2009 Efficiency First ·
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Ok – have your phone number on my list of people to call today. If the tax credits were going to be gutted why were you not on top of all that. Asking us members to contact our representatives and making calls to their staff members. Where was this organization?
Please do not just report that the tax credit was gutted rather tell us what you did to try and prevent it!
This is a new organization Efficiency First – will need reasons to renew my membership – being in CA certainly is not a help when the lobbying that needs to be done is in DC. How many other Association main offices are in the DC area. ALL OF THEM except EF.
Give us reasons we should not all start a organization to lobby – right here in DC. Loosing these tax credits is a big thing in our industry right now.
Any thoughts, any response?
Hi,
Thanks for the tax credit information. Couple of questions. Does insulation still qualify for the rerduced credit? Labor & materails or just materails?
Thanks,
Jim Apperson
Thank you for your comment. Efficiency First has been following the renewal of tax credit 25C and the possibility of 25E being introduced for several months. Most of our work on these two tax credits has been in the U.S. Senate, where the overall tax credits were being negotiated. During this time, Kara Rinaldi, our DC Based lobbyist conducted several meetings with Senate offices to discuss our position. These meetings included Senators Baccus (Chair Finance Committee D-MT), Snowe (R-ME), Bingaman (D-NM), Majority Leader Reid (D-NM), Republican Leader McConnell (R-KY) and several others to state our position. To clarify our position Efficiency First issued follow up letters http://www.efficiencyfirst.org/blog/2010/11/29/tax-incentives-25c-and-25e/
In order to ensure the support of Efficiency First’s position on tax credits we reached out to partners in the Home Star Coalition and through the Alliance to Save Energy to build support among interest groups and from among America’s top corporations.
As we moved forward to support our position, we asked Efficiency First members on (DATE) to call the U.S. Senate. However, our efforts fell short for the time being. Your feedback is helpful as the Policy Committee of the Board moves forward with a 2011 Congressional strategy.
Hi Jim,
As we understand it, insulation does still qualify and it is only for materials. Labor, unfortunately, did not make it in the bill which we petitioned for.
Hope this helps