2025 HVAC Tax Incentive Changes: What You Need to Know
Upgrading your heating, ventilation, and air conditioning (HVAC) system is an investment that pays off in comfort, energy savings—and right now, major federal tax incentives. But you need to act quickly.
The 2025 federal budget, finalized in July, updated that the current HVAC tax credits under the Inflation Reduction Act (IRA) will expire on December 31, 2025.
If you’ve been thinking about replacing or upgrading your heating and cooling system, 2025 is your last chance to claim these significant tax savings.
At Gross Heating & Air Conditioning, we make the process easy by helping you select the right energy-efficient equipment to qualify for federal incentives. We’re your partner in maximizing savings and upgrading your comfort.
Why 2025 Is a Critical Year for Tax Credits
The IRA continues to offer generous federal tax credits for homeowners who make qualifying energy-efficiency HVAC installments—but only until the end of 2025. After this year, these credits will be phased out and unavailable for future installations.
- Air Conditioners: Up to $600
- Furnaces: Up to $600
- Air-Source Heat Pumps: Up to $2,000
These credits apply to equipment and installation costs when ENERGY STAR® certification and eligibility criteria are met. Multiple credits can be claimed, so you could benefit from tax credits by replacing both your air conditioner and furnace this year or upgrading to a heat pump and furnace.
To claim these credits, you'll need to file IRS Form 5695 with your 2025 return. Verify with a tax expert that your installation qualifies. Remember, these are tax credits, which reduce your tax liability (the amount you owe in taxes); you will not receive a tax refund for qualifying energy upgrades.
Time Is Running Out—Don’t Miss Out
This is the final year for homeowners to take advantage of the federal energy-efficiency tax credits. To qualify, projects must be completed and placed in service by December 31, 2025.
With tax credits expiring, demand is expected to surge as people rush to take advantage of all incentives before they’re gone. Be sure to start planning for your HVAC upgrades on your schedule before our calendar books up.
Let Gross Heating & Air Conditioning Help You Save in 2025
Gross Heating & Air Conditioning can guide you through the maze of 2025 HVAC tax credits. We’ll help you choose the right energy-efficient system for your [linked-city-1], home and ensure your upgrade is eligible for the maximum possible savings.
Call us today at 262-783-6000 or request service online to schedule your free consultation—and lock in your tax credits before they’re gone for good.
Due to government regulation, this information can change after the blog is published. Speak to a professional to verify available tax credits.