You would be wanting to do more like 50-75%, if the reading was 0.5 ppm to start with. Ammonia should be kept as low as possible and never allowed to rise above 0.25 ppm.
Yes, it is fine to rinse filter sponges in old tank water, that is how all of us clean them. If you clean them under tap water, you will kill the bacteria.
I disagree with both of these statements, or at the very least, both statements are incomplete.
0.25 ppm is not some magic number where all of a sudden it goes from okay to not okay. The concentration of ammonia that is dangerous is a strong function of pH and a weak function of the water temperature. See a more in depth discussion here: http
/www.fishforums.net/index.php?/topic/154313-of-toxic-ammonia-charts/
I am not saying that 0.25 ppm is meaningless. Any level of ammonia exposure does seem to permanently weaken a fish's immune system (see a citation in the above link). But, 0.25 ppm in water of pH of 6.0 is significantly different than 0.25 ppm on ammonia in 8.0 pH water.
Also, if there is ammonia in the tap water, one could have 0.25 ppm or more even after a water change. If the tank is healthy, and more specifically is the bacterial filter colony is healthy, the bacteria should be able to process 0.25 ppm rather quickly. In this case, most people shouldn't have to get worked up about it.
And that leads to washing the filter with tap water. If the colony is healthy again, the concentration of chlorine or chloramine in the water is so very low that unless you run water over the sponge for a long continuous time, it isn't going to kill off a large percentage of the bacteria. The numbers of bacteria in the filter are going to be pretty large -- the chlorination is not designed to kill off that large of numbers of bacteria in the water. If the water company gets that large number of bacteria, they shut down.
This is further evidenced by the number of members here who do water changes without using any conditioner at all and have zero problems doing so. There is a very good discussion on this topic in the Scientific Section if you want more info.
All that said, water conditioner is cheap, and if you don't want to take any risk, rinse the sponge out only with tank water. It is the safest option, but the risk from not doing this is very small, in my opinion, and again if the tank has a good history of good health, all the better.