Don’t miss out on up to $2,000 in savings! If you’ve been thinking about upgrading your HVAC system, now is the time to act. The federal energy tax credits for HVAC upgrades (known as the Inflation Reduction Act) are set to expire on December 31, 2025. That means homeowners have just two months left to install qualifying systems and claim their savings.
What Are Federal HVAC Tax Credits?
The Energy Efficient Home Improvement Credit (25C) offers homeowners up to a 30% federal tax credit on qualifying HVAC and energy upgrades. This credit was designed to make it easier and more affordable for households to improve energy efficiency, reduce monthly utility bills, and transition to greener technologies like electric heat pumps.
However, recent policy changes mean these valuable incentives are ending sooner than expected. To qualify, your equipment must be purchased and installed before December 31, 2025 — not just ordered or contracted.
How Much Can You Save?
Depending on the equipment you choose, homeowners can claim:
| Upgrade Type | Maximum Credit | Requirements |
|---|---|---|
| Heat Pumps | Up to $2,000 | Must meet ENERGY STAR® or CEE Tier 2 standards |
| Central Air Conditioners | Up to $600 | High-efficiency units only |
| Furnaces / Boilers | Up to $600 | Must meet specific AFUE ratings |
| Electrical Panel Upgrades | Up to $600 | Only when necessary for HVAC installation |
| Insulation, Doors & Windows | Up to $1,200 total | Can be combined with HVAC credit |
That means you could save thousands of dollars on top-tier equipment while also lowering your monthly energy bills.
Why Heat Pumps Are the Smartest Choice in 2025
If you’re looking for the best value, heat pumps are the clear winner. Modern cold-climate inverter heat pumps can both heat and cool your home efficiently, even in Philadelphia and Bucks County winters.
According to ENERGY STAR®, heat pumps can cut electricity use by up to 50% compared to baseboard or electric resistance heating. Combined with federal tax credits and potential local rebates, homeowners can significantly reduce both up-front costs and long-term bills.
Plus, since these systems replace both your AC and furnace, they’re an all-in-one comfort solution that’s quieter, cleaner, and better for the planet.
The Deadline Is Approaching Fast
To qualify, your HVAC system must be installed and operational by December 31, 2025. With supply chain delays, scheduling backlogs, and year-end demand, waiting until November or December could mean missing the deadline.
That’s why right now is the time to schedule your upgrade.
At ECI Comfort, we’re already seeing increased demand as homeowners rush to secure qualifying systems before the incentive ends.
Combine Federal Credits with Local Rebates
In addition to federal tax credits, many local utility companies and state programs offer rebates for high-efficiency heat pumps. In Pennsylvania and New Jersey, some rebates can come out to a few hundred dollars on top of federal credits — making 2025 one of the most affordable times ever to upgrade.
Don’t Wait — Schedule Your Estimate Now
With just two months remaining, appointment slots are filling fast. By upgrading before the end of the year, you can:
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Save up to $2,000 with federal tax credits
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Cut your energy bills by 30–50%
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Enjoy year-round comfort with modern inverter technology
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Reduce your carbon footprint
Schedule your free estimate today with ECI Comfort — your trusted HVAC experts in Bucks County, Philadelphia, and the Delaware Valley. Act now and make sure your home improvement is completed in time to qualify!
If you live in the Delaware Valley/Greater Philadelphia area and would like to find comfort within your home, visit our website or give us a call at 215 - 245 - 3200 to learn more.
