If you’ve been considering making efficiency upgrades to your home, now is the time to act. The Inflation Reduction Act of 2022 created valuable federal tax credits to help homeowners save money on high-efficiency equipment. But here’s the catch: these tax credits are set to expire at the end of 2025.
That means homeowners only have a short window left to claim hundreds — or even thousands — in savings on new furnaces, air conditioners, heat pumps, water heaters, electrical panels, EV chargers, and geothermal systems.
Below, we’ll break down the credits available for the equipment we install and how you can take advantage before time runs out.
Energy Efficient Home Improvement Credit (25C)
The Energy Efficient Home Improvement Credit provides 30% back on installation costs, up to $1,200 per year. Some upgrades qualify for an additional $2,000 in annual credits, making this one of the most valuable homeowner incentives available.
Qualifying Upgrades We Offer:
High-Efficiency Air Conditioners – Save up to $600 in credits when you replace your old, inefficient system.
High-Efficiency Furnaces – Claim up to $600 back on qualifying furnace installations.
Boilers – Efficient boiler systems may qualify for up to $600 in credits.
Tank & Tankless Water Heaters – Save up to $600 on eligible water heating upgrades.
Electrical Panel Upgrades – Claim up to $600 when upgrading your panel to support today’s energy needs.
Air Source Heat Pumps – Qualify for up to $2,000 in annual tax credits thanks to their high efficiency.
Residential Clean Energy Credit (25D)
If you’re ready to invest in renewable home energy, the Residential Clean Energy Credit provides 30% back on installation costs for qualifying systems. Unlike other credits, this applies to big-ticket clean energy upgrades.
Qualifying Upgrade We Offer:
- Geothermal Heat Pumps – Save 30% on your system cost before the credit expires.
EV Charger Tax Credit
Driving an electric vehicle? The Inflation Reduction Act expanded the Alternative Fuel Refueling Property Credit for home charging equipment.
- Covers 30% of installation costs, up to $1,000.
- Applies to qualifying EV chargers and necessary electrical upgrades.
How to Claim Your Tax Credit
- Save all invoices and documentation from your installation.
- Confirm your equipment meets federal efficiency standards (we’ll help you with this).
- File IRS Form 5695 with your tax return to claim your credit. More information for claiming your credits can be found here
Don’t Miss Out on 2025 Tax Credits
These federal tax credits are a once-in-a-decade opportunity to save on major home upgrades — but they won’t last forever. With the deadline at the end of 2025, now is the time to schedule your installation and lock in your savings.
