Editors Blog

Has the Ship Truly Sailed on 25C?

August 23, 2012
Did you hear the news?

Could it possibly be true? The government is reinstating the beloved 25C tax credit?

Well, maybe. But don’t hold your breath.

On Aug. 2, the Senate Finance Committee, by a vote of 19-5, favorably reported out a number of amendments to the Family and Business Tax Cut Certainty Act of 2012.

I know, you’re thinking, “What does that mean to me and why do I care?”

Well, the Family and Business Tax Cut Certainty Act is essentially acting as a cargo ship full of tax extensions for a number of incentives that have expired, or are set to expire. (Someone cue up the theme song to Love Boat…)

Many in the HVAC industry may be surprised to learn that the (somewhat) cherished 25C and 45L tax incentives were included in this bill and, if approved, would be extended for two additional years.

In case you’ve forgotten, 25C, or the “Existing Home Retrofit Tax Credit” was first implemented in 2005 and allowed eligible taxpayers to claim 10 percent, up to $500, on costs associated with improved residential energy efficiency. The credit expired in 2008, but was revived in 2009, with an increased maximum amount of $1,500, or 30 percent of qualified costs. The credit was then eliminated at the close of 2011.

The Certification of Energy Efficient Home Credit, or 45L, provided homebuilders a $2,000 credit if they built a dwelling that met or exceeded a list of energy saving requirements. The credit, which first appeared in 2006, also applied to manufactured homes, with rates between $1,000 and $2,000 depending on the level of achieved energy savings. The 45L credit was set to expire in 2007, but was extended in 2008. In 2011, more than 32,000 homes met the criteria and benefited from the incentive, which also was drowned by Congress at the close of 2011.

Again, with the speed of our current Congress — which rivals the speed of a sprinting sloth — I wouldn’t get my hopes up. However, it may be a very positive sign that these incentives are at least back on the drawing board.

The senate is expected to further discuss the Family and Business Tax Cut Certainty Act, and its financial freight, following the August recess, which reconvenes Sept. 10). The House isn’t expected to consider the measure until late November – if at all. If you support the return of 25C or 45L, now may be a good time to come to the rescue by spamming your local representative. If not, they may forever be stranded on Gilligan’s Island.

You must login or register in order to post a comment.



Image Galleries

2015 HARDI Fly-In

Highlights from HARDI's Congressional Fly-In in Washington, D.C.


NEWSMakers: Clint Schreck

Clint Schreck, general manager, Columbus Worthington Air, Columbus, Ohio, discusses winning Angie’s List Super Service Award, how to handle online reviews, and much more.

More Podcasts


NEWS 05-25-15 cover

2015 May 25

Check out the weekly edition of The NEWS today!

Table Of Contents Subscribe

Legislation and Regulation

What legislative/regulatory issue is most important to you as a HVAC business owner?
View Results Poll Archive


2015 National Plumbing & HVAC Estimator

Every plumbing and HVAC estimator can use the cost estimates in this practical manual!

More Products

Clear Seas Research


Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.


Magazine image
Register today for complete access to ACHRNews.com. Get full access to the latest features, Extra Edition, and more.


facebook icontwitter iconyoutube iconLinkedIn i con