If you’re a homeowner in Santa Rosa Beach or the surrounding areas, you likely want to make smart financial decisions regarding your property. That includes finding ways to save money, especially when it’s time to upgrade or replace a major system like your home’s air conditioner and heater. The good news is that a valuable opportunity exists to help you do just that.
The 25C Energy Efficient Home Improvement Tax Credit can help make a new, qualifying heat pump system more attainable. However, this credit expires on December 31, 2025. Taking action soon can help you secure a significant financial benefit that may not be available for long.
Don’t wait to take advantage of this expiring tax credit. Reach out to JefCo Air Conditioning & Refrigeration today to learn more about your options for a new heat pump system. Call us at (850) 616-2183 or fill out our online contact form to get started.
What Is the 25C Energy Efficient Home Improvement Tax Credit?
The 25C Energy Efficient Home Improvement Tax Credit is a federal program designed to encourage homeowners to install more energy-efficient equipment. It’s a way for the government to help you offset the costs of making your home more environmentally friendly and comfortable.
This credit is available for a variety of home improvements, but one of the most substantial benefits is for the installation of a new, qualifying heat pump. Unlike a traditional deduction that reduces your taxable income, a tax credit directly reduces the amount of tax you owe, which can be a much more impactful way to save.
Why a New Heat Pump Is a Smart Choice
A heat pump is a modern solution for home comfort that offers both heating and cooling in one system. For homeowners in Santa Rosa Beach, Florida, and the surrounding areas, this is particularly beneficial because it’s highly efficient in our warmer climate. Rather than generating heat like a furnace, it moves heat from one place to another.
This means that in the summer, it moves heat out of your home to cool it, and in the winter, it moves heat from the outside in to warm your home. This process requires less energy than traditional systems, which can lead to lower monthly utility bills and a more comfortable home year-round.
How to Claim the Energy Efficient Home Improvement Credit
Taking advantage of the tax credit requires a few straightforward steps. It’s important to understand the process so you are prepared to claim the credit when you file your taxes.
The first step is to work with a reputable HVAC contractor who can help you select a qualifying heat pump. The system you choose must meet specific energy efficiency requirements set by the federal government. Once you have a qualifying heat pump installed, you’ll need to keep all of the documentation. This includes invoices, receipts, and any other paperwork that proves the cost of the equipment and its installation.
When you’re ready to file your federal tax return, you must complete and submit IRS Form 5695, or the Residential Energy Credits form. This form allows you to calculate the credit amount based on your expenses and apply it to the taxes you owe. It is a nonrefundable credit, which means it can reduce your tax liability down to zero, but you will not receive any of the credit back as a refund if your tax liability is already zero.
What to Know About the Credit Amount
The 25C Energy Efficient Home Improvement Tax Credit provides a significant financial incentive for homeowners. For a qualifying heat pump, you can receive a credit equal to 30% of the project’s total cost, including installation.
This tax credit has an annual limit of $2,000 for heat pumps. This means that even if the total cost of your project is high, the maximum credit you can receive in a single year for your heat pump is $2,000. It is a yearly credit, so if you had other qualifying energy-efficient improvements done in the same year, they would have their own limits.
Don’t Miss Out on This Valuable Tax Credit Opportunity
The December 31, 2025, expiration date for the 25C Energy Efficient Home Improvement Tax Credit is fast approaching. If you’ve been considering replacing your old HVAC system with a more modern and efficient heat pump, now is the time to act. A new heat pump can not only improve your home comfort and potentially reduce your energy bills, but it can also provide you with a valuable tax credit that can offset a significant portion of the cost.
Our team at JefCo Air Conditioning & Refrigeration is here to guide you through the heat pump installation process, from selecting the right system for your home in Santa Rosa Beach, Florida, or the surrounding areas. We can help ensure you have the documentation needed to claim this important credit.
Get Your New Heat Pump and Claim the Tax Credit
If you’re ready to take control of your home comfort and take advantage of the Energy Efficient Home Improvement Credit, it’s a good time to start the conversation. Our team at JefCo Air Conditioning & Refrigeration has experience helping homeowners in Freeport, Destin, Niceville, Santa Rosa Beach, and beyond find the right solutions for their needs. We can help you navigate the options for a qualifying heat pump and make sure you’re set up for success in claiming this credit.
Contact us today to discuss your new heat pump installation. You can schedule a consultation by calling (850) 616-2183 or by filling out our online contact form.