It would be very foolish to put off a replacement of an HVAC system until 2026!
The federal 25C tax credit for residential energy efficiency upgrades will be eliminated at the end of this year. This change was signed into law just days ago as part of the One Big Beautiful Bill Act (signed into law on July 4, 2025), and it carries major implications for the HVAC market.
What’s Changing:
The 25C tax credit will no longer be available for equipment placed in service after December 31, 2025
There will be no extensions or renewals under current law. This includes credits for heat pumps, furnaces, central ACs, insulation, and more.
There is still time to use the tax credit: After December 31, 2025, homeowners will no longer be able to claim the 25C tax credit, regardless of equipment type or efficiency
