25C Eligible Systems
What Is the 25C Tax Credit?
The 25C tax credit is a means for the federal government to incentivize energy efficiency by offering tax credits for installing qualifying upgrades in your home. While your specific tax credit can vary, 25C offers as much as $3,200 in a single tax year.
Fast Facts about 25C
Eligibility
25C tax credits apply to your primary residence, not additional properties you don’t live in, like rentals or vacation homes. However, there are tax credits available for certain improvements for second homes.
Also, keep in mind that you’re only eligible for a tax credit if you have tax liability – meaning you owe taxes at the end of the year. If you don’t owe anything, you won’t have money added to your tax refund.
The eligible upgrades include:
Air Conditioning
- 30 % of the project cost up to $600 maximum
- Split systems must be ENERGY STAR® certified with SEER2≥ 16
- Packaged systems must be ENERGY STAR® certified with SEER2 ≥ 15.2, EER2 ≥ 11.5
Heat Pump
Heat pumps are a leading way to heat and cool your home more efficiently. Instead of burning fuel to generate heat, heat pumps transfer heat energy in either direction to provide cooling or heating in all seasons.
Appliances like heat pumps are ranked according to CEE tiers. Higher tiers represent higher levels of efficiency. Air source heat pump efficiency is measured in Heating Seasonal Performance Factor (HSPF), which is the heat output divided by the electricity used over the heating season (BTUs per watt-hour).
Electric or natural gas heat pumps may be eligible for up to $2,000, but they must meet the highest efficiency standards available at the time you claim the credit. This typically means ENERGY STAR® appliances with CEE tiers of 1, 2, or 3.
- Air source heat pumps have additional requirements:
- 30% of the project cost, up to $2,000 maximum
- Ducted split systems must be ENERGY STAR® certified with HSPF ≥ 7.8, SEER2 ≥ 15.2, EER2 ≥11.7
- Packaged systems must be ENERGY STAR® certified with SEER2 ≥ 15.2, EER2 ≥ 11.5
- Ductless mini-split (non-ducted) systems must be ENERGY STAR® certified with SEER2 ≥ 16, EER2 ≥ 12, HSPF2 ≥9
Insulation and Air Sealing
Insulation and air sealing, otherwise known as weatherization, prevent heating and cooling loss from leaks. You may be able to claim credit for weatherization materials like:
- Insulation batts
- Blow-in insulation fibers
- Rolls of insulation
- Expanding spray foam insulation
- Rigid boards of insulation
- Foam-in-place insulation
- Specialized caulk, tape, foam, and sealants
All weatherization supplies must meet the Department of Energy’s recommended R-values for your climate zone to qualify for a tax credit.
Water Heaters
To qualify for a tax credit, all weatherization supplies must meet the Department of Energy’s recommended R-values for your climate zone. Heat pump water heaters also qualify for an increased annual credit limit of $2,000.
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Our Story
It all started with a flashlight.
Our CEO, Ken Goodrich, was a 10-year-old boy holding a flashlight for his dad as he worked on an air conditioner for a customer. His father was an independent technician in Las Vegas who admired the longevity and quality of Goettl products. In 2013, Goodrich purchased Goettl Air Conditioning & Plumbing and has since expanded the company across Arizona, Nevada, and Texas.