If you’ve been considering upgrading your home’s HVAC system for better comfort, energy efficiency, and long-term savings, now is the time to act. Thanks to a recent change in federal legislation, valuable tax credits that help offset the cost of energy-efficient heating and cooling systems will expire at the end of 2025.
We want to make sure our customers don’t miss this opportunity to save. With federal HVAC tax credits ending soon, you still have time to take advantage of major incentives—but only if you act fast.
What’s Changing?
For years, the federal government has offered generous tax credits to encourage homeowners to install high-efficiency HVAC and clean energy systems. These credits were originally scheduled to run through 2032. However, the recently passed “Big Beautiful Bill”, signed into law on July 4, 2025, accelerates the expiration date of these programs.
Now, 2025 will be the final year to take advantage of these savings. Systems must be fully installed and operational by December 31, 2025 to qualify.
Tax Credits You Can Still Claim (For Now)
1. Energy Efficient Home Improvement Credit
- Covers: High-efficiency air conditioners, heat pumps, furnaces, and other eligible HVAC upgrades
- Value: Up to 30% of project costs, with a cap of $1,200 per year
- Exception: Heat pump systems may qualify for up to $2,000 annually
- Deadline: Must be installed by December 31, 2025
2. Residential Clean Energy Credit
- Covers: Geothermal heat pumps and other clean energy upgrades
- Value: 30% of total system cost — no cap on dollar amount
- Deadline: Must be installed and operational by December 31, 2025
Why You Should Act Now
Miss the deadline, miss the savings. Once the clock strikes midnight on December 31, 2025, these credits are gone. Delaying your HVAC project could mean losing out on hundreds—or even thousands—of dollars in federal tax incentives.
High demand may mean limited scheduling. As more homeowners race to meet the deadline, installation slots are filling up fast. Planning early helps ensure your new system is installed on time and eligible for the credits.
Ongoing energy savings is another benefit. High-efficiency HVAC systems don’t just save you money in the short term—they also reduce monthly energy bills and improve comfort for years to come. It’s an investment in your home’s performance, value, and livability.
How Jack Lehr Can Help You Maximize Your Savings
At Jack Lehr Heating Cooling & Electric, our experienced team is here to guide you through the process:
- Free, no-obligation estimates to help you compare your options
- Assistance selecting qualifying equipment that meets federal efficiency standards
- Expert installation by licensed professionals who get the job done right
- Advice on how to document your project for your tax return
- A commitment to customer satisfaction—before, during, and after installation
Don’t Wait—Secure Your Tax Credits Before They Expire
The window to take advantage of these federal tax credits is closing fast. If you’re thinking about installing a new HVAC system, heat pump, or clean energy upgrade, now is the time to move forward.
Find professional air quality services at Jack Lehr, the HVAC company your neighbors have trusted for years.