If you're planning HVAC upgrades, now is the time to act. Recent legislative changes under the "One Big Beautiful Bill" mean federal tax credits for HVAC upgrades—specifically Sections 25C and 25D—are ending sooner than originally planned. Homeowners now have until December 31, 2025, to take advantage of significant financial incentives.
What Are Sections 25C and 25D?
Section 25C – Energy Efficient Home Improvement Credit:
-
Offers homeowners up to $3,200 annually for qualifying HVAC upgrades.
-
Covers upgrades like heat pumps (up to $2,000), furnaces, AC units ($600), and insulation or windows ($1,200).
Section 25D – Residential Clean Energy Property Credit:
- Provides a 30% tax credit for clean energy systems such as geothermal heat pumps, solar panels, and battery storage.
Originally, these credits were intended to last until 2032 under the Inflation Reduction Act. However, due to new legislation, these incentives now expire at the end of 2025.
Why Act Now?
Maximize Savings
These federal credits significantly reduce your upfront investment, making upgrades more affordable. Waiting beyond 2025 means losing these substantial benefits.
Ensure Installation Before Deadline
Given the anticipated demand surge, scheduling installations might become challenging as the deadline approaches. Early action helps you avoid delays and ensures your project qualifies for the credits. ECI Comfort is here to provide you with top-notch HVAC solutions with a free in-home consultation with one of our project managers.
Qualifying for the Tax Credits
To qualify:
-
Equipment must meet specific efficiency ratings set by the Department of Energy (DOE) and be CEE listed.
-
Upgrades must be completed and operational ("placed in service") by December 31, 2025.
-
Keep detailed documentation: manufacturer certifications, invoices, and IRS Form 5695 to file accurately.
Local Impact: Bucks County Homeowners
For homeowners in Bucks County, Philadelphia, and the Delaware Valley, upgrading HVAC systems not only maximizes comfort but also ensures substantial savings through federal tax credits. Acting quickly helps you secure local, trusted professionals who are already booking fast due to rising demand.
Key Takeaways
-
Act before December 31, 2025, to claim HVAC federal tax credits under Sections 25C & 25D.
-
Qualify for up to $3,200 annually (25C) and 30% savings on clean energy installations (25D).
-
Work with knowledgeable local HVAC professionals who can guide you through selecting qualifying equipment and ensure timely installation.
Ready to Upgrade and Save?
As your local HVAC professional, we're here to help you navigate these changes, choose efficient and qualifying heating and cooling solutions, and schedule timely installations. Don't miss this opportunity, contact us today and secure your savings before they're gone!
k
