Federal Tax Credits for HVAC Upgrades Ending Soon
Ted Heinzelman | Aug 03 2025 15:15
Take Advantage of Federal Tax Credits Before They Expire
If you’re considering upgrading your heating and cooling system, now is the time to act. Two major federal tax credits aimed at helping homeowners save on energy-efficient upgrades are set to expire on December 31, 2025. These credits, stemming from the Big Beautiful Bill, cover a range of energy-efficient home improvements and will soon become a thing of the past.
Understanding Sections 25C and 25D
Currently, Sections 25C and 25D of the tax code offer valuable incentives for improvements:
- Section 25C: Provides credits for energy-efficient improvements like insulation, high-efficiency HVAC systems, windows, and doors.
- Section 25D: Supports clean energy upgrades, including solar panels and geothermal systems.
These credits will no longer be available for new projects starting January 1, 2026, so it's crucial to act promptly to benefit from potential savings.
Potential Savings for Homeowners
By leveraging these tax credits, homeowners can currently claim:
- Up to $2,000 for qualifying heat pumps, water heaters, and biomass heating systems.
- A maximum of $1,200 for other improvements, such as:
- High-efficiency furnaces or air conditioners
- Insulation improvements
- Energy-efficient windows (up to $600)
- Exterior doors (up to $250 per door, $500 total)
- Home energy audits (up to $150)
These savings cover both the costs of equipment and installation, provided the systems meet energy-efficiency standards.
Why Upgrading Now Makes Sense
Once 2026 rolls around, these financial incentives will disappear, meaning no more tax credits or offsets. If your HVAC system is older than a decade, isn't running efficiently, or is leading to high energy bills, now is the optimal time to upgrade to an energy-efficient option.
How Integrity Heating Simplifies the Process
At Integrity Heating and Air Conditioning, we aim to streamline and make this transition as affordable as possible. Our experienced team will guide you in selecting qualifying equipment, offer financing options, and provide professional, local installation services.
Don’t Miss Out on These Benefits
The opportunity to capitalize on these tax credits will end after 2025. Make your HVAC upgrade today and enjoy substantial savings. Contact Integrity Heating and Air Conditioning at 317-804-7699
or visit us at www.integrityhomehvac.com
to learn more.
Integrity Heating & Air Conditioning | Sheridan, IN
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