Don’t Miss Out on Thousands in Federal Tax Credits for Home Upgrades
HVAC | Water Heaters | Electrical Panels
Ends Dec. 31, 2025
What Are These Home Upgrade Tax Credits?
The federal government is offering limited-time tax credits for energy-efficient home upgrades as part of the Inflation Reduction Act (IRA). These credits are designed to help homeowners save money while improving comfort, efficiency, and home value.
However, due to recent legislation, most of these credits expire on December 31, 2025, meaning you need to have your upgrade installed before the deadline to claim them.
Which Systems Qualify for Tax Credits?
1. HVAC Systems
- High-efficiency heat pumps and central air conditioners
- Credit: Up to $2,000 on qualifying equipment - PLUS our match of those credits!
2. Water Heaters
- Heat pump water heaters
- High-efficiency gas or electric water heaters
- Credit: Up to $2,000 on qualifying units- PLUS up to $678 in local discounts!
3. Electrical Panels
- Electrical panelboards, sub-panelboards, branch circuits or feeders with a load capacity of 200 amps or more
- Credit: Up to $600 - PLUS our match of those credits!
How Do These Credits Work?
- You install qualifying equipment before December 31, 2025.
- You claim the credit when you file your federal income tax return for that year.
- The credit is applied directly against the federal taxes you owe — reducing your tax bill dollar-for-dollar.
Example:
If you install a qualifying heat pump water heater in 2025 and it qualifies for the full $2,000 credit, your federal tax bill will be reduced by $2,000.
Note: each home is eligible for up to $3200 in tax credits per year, so you can take advantage of savings across multiple systems.
Why Act Now?
- Deadline approaching: Installations must be completed before Dec 31, 2025.
- Avoid last-minute rush: Contractors book up quickly as deadlines near.
- Secure your savings: Lock in today’s promotions and the federal credit before they’re gone.
How to Claim Your Credit
- Confirm Eligibility: Our team can help ensure your upgrade qualifies.
- Keep Your Paperwork: Save your invoice and the manufacturer’s certification statement.
- File with Your Taxes: When filing your federal return, complete IRS Form 5695 (Residential Energy Credits) following IRS instructions, and include the credit amount.
- Enjoy Your Savings: Lower your tax bill and your monthly energy costs.
Ready to Get Started?
Don’t let your rebate slip away. We’ll guide you from selection to installation, and make sure you have everything you need to claim your credit at tax time.
Frequently Asked Questions
Q: Can I claim these credits if I’ve already used them in a previous year?
A: Yes! Many of these credits reset annually, meaning you can claim them again for a new qualifying upgrade in 2025.
Q: What if my tax bill is smaller than the credit amount?
A: The credit reduces your tax bill but is not refundable. If your tax liability is smaller, the unused portion does not carry over to future years.
Q: Does financing affect my eligibility?
A: No — you can finance your upgrade and still qualify, as long as it’s installed before Dec 31, 2025.
Q: Will these credits be extended?
A: Currently, the credits for HVAC, water heaters, and electrical panels are set to expire at the end of 2025. It’s best to act now to be certain you’ll receive them.
For more information, check out the IRS’ page on Energy Efficient Home Improvement Credits.
Install your home system before Dec 31, 2025 to lock in your savings.
Schedule Your Free Estimate Now
Disclaimer:
The information provided on this page is for general educational purposes only. Individual eligibility and credit amounts can vary. We do not offer tax advice, and we cannot prepare or file taxes on your behalf. Please consult a qualified tax advisor or accountant for guidance specific to your situation. Terms and conditions may apply. Call for details.