The 25C tax credit was initially introduced in 2005 as part of the Energy Policy Act. Over the years, it has undergone enhancements and reached its most advantageous form in 2022 with the Inflation Reduction Act. With a focus on reducing carbon emissions, the legislation offers improved tax incentives for eco-friendly home and business solutions.
With our extensive experience in installing heat pumps and tankless water heaters, we are thrilled to help our customers seize these savings through their installation. We also encourage you to explore the other listed home upgrades to further enhance your residence and enjoy savings.
Homeowners can also take advantage of the modified and extended Residential Clean Energy credit, which provides a 30 percent income tax credit for clean energy equipment such as rooftop solar, wind energy, geothermal heat pumps, and battery storage through 2032. This credit will step down to 22 percent for 2033 and 2034.
Commercial building owners can also take advantage of these new tax credits and deductions. The Inflation Reduction Act of 2022 extends and expands the energy-efficient commercial buildings deduction that was made permanent under Section 179D in 2021. Buildings that increase their energy efficiency by at least 25 percent will be able to claim this deduction, with bonuses for higher efficiency improvements.