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Don’t Miss Out: Major HVAC Tax Credits End After 2025

September 30, 2025

HVAC TAX CREDITS ARE GOING THE WAY OF THE BUFFALO!

If you’ve been considering upgrading your HVAC system, the clock is ticking. Several valuable federal tax credits for energy-efficient home improvements are scheduled to expire after December 31, 2025. That means 2026 may no longer offer the same financial benefits homeowners enjoy today. Acting now not only locks in tax savings but also ensures you benefit from long-term energy efficiency and comfort.


Below, we’ll break down the major tax credits that are ending, why it’s critical to act before the deadline, and how you can combine these credits with up to $2,800 in additional HVAC rebates for maximum savings.


Energy Efficient Home Improvement Credit (25C)

The 25C credit currently provides homeowners with incentives for installing qualified energy-efficient upgrades—everything from insulation and windows to HVAC systems like heat pumps, central AC units, and furnaces.


What’s changing?
After December 31, 2025, this credit disappears. Any qualifying HVAC installation placed in service in 2026 won’t be eligible. Waiting could cost you hundreds (or even thousands) in lost credits.


Why act now?
With equipment costs on the rise and demand increasing, the best time to take advantage of this credit is before it vanishes.


Residential Clean Energy Credit (25D)

This credit is aimed at renewable energy technologies, including geothermal heat pumps and other clean-energy HVAC solutions.


What’s changing?
Like 25C, this credit also expires for projects placed in service after December 31, 2025. If you’re considering geothermal or hybrid systems, you’ll need to install before the end of 2025 to qualify.


Why act now?
These systems can deliver decades of savings on energy bills. Missing the credit means paying full price for a system that’s already a significant investment.


179D Commercial Buildings Deduction

For business owners and property custodians, the 179D deduction offers substantial tax relief for energy-efficient upgrades in commercial and multi-unit buildings.


What’s changing?
This deduction is ending for construction projects that begin after June 30, 2026. Commercial properties planning large-scale HVAC upgrades should start the process soon to meet this timeline.


Why act now?
Commercial upgrades often involve planning, permitting, and financing—delaying could push your project past the eligibility window.

Plumber in red and yellow working on heating system with tools.

Bonus Savings: Up to $2,800 in HVAC Rebates

On top of these federal tax credits, we’re proud to offer rebates of up to $2,800 provided through the U.S. Government and TVA. These rebates apply to qualifying energy-efficient HVAC installations and even some HVAC repairs.


Unlike the federal tax credits, these rebates aren’t currently set to expire in 2026—but they will not last forever. The funds are limited, and once the program ends, the savings are gone for good.


The Bottom Line: Don’t Wait Until 2026

If you delay your HVAC replacement or upgrade until after 2025, you risk missing out on thousands of dollars in tax credits and rebates. Combining current federal credits with the $2,800 TVA rebates makes 2025 the most cost-effective time to act.


Our team is here to help you choose the right system, handle installation, and guide you through the paperwork so you can maximize your savings before these opportunities disappear.


Ready to Save?

Contact us today to schedule your HVAC consultation. Let’s upgrade your comfort, improve your energy efficiency, and make sure you don’t miss out on credits and rebates worth thousands of dollars before they’re gone. Call or text us at (423) 741-5459.

(423) 741-5459

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