Unlock Savings with the Federal 25C HVAC Tax Credit
If you're planning to upgrade your home’s heating or cooling system, the federal 25C Energy Efficient Home Improvement Credit can help you save. Qualifying homeowners may receive up to $2,000 in federal tax credits when installing eligible high-efficiency HVAC equipment.
What Is the 25C Tax Credit?
The federal 25C tax credit was created to encourage homeowners to invest in energy-efficient home improvements. When you install qualifying HVAC systems, you may receive a credit toward your federal income taxes for a portion of the project cost, up to the maximum amount allowed each year.
Eligible upgrades can include:
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- High-efficiency heat pumps
- Energy-efficient air conditioners
- Qualifying furnaces, boilers, and electric HVAC systems
- Other approved efficiency improvements that meet federal standards
This incentive is available for qualifying installations completed through December 31, 2025, subject to IRS rules and annual limits.
How Much Can You Save?
The exact amount you can claim depends on the type of equipment installed and current federal guidelines. Under the 25C program, homeowners may be eligible for:
- Up to $2,000 in tax credits for qualifying heat pump systems
- Additional credits for other eligible energy-efficient home improvements
These credits help offset your upfront investment while you continue to save on utility bills with a more efficient system. For specific tax advice or to confirm the amount you may qualify for, please consult a licensed tax professional.
Which HVAC Systems Qualify?
To qualify for the 25C tax credit, HVAC equipment must meet minimum energy-efficiency standards set by the IRS and the U.S. Department of Energy. McCall’s can help you choose systems that meet or exceed these requirements.
High-Efficiency Heat Pumps
Designed for year-round comfort and energy savings.
Energy-Efficient Air Conditioners
Cooling systems that use less energy without sacrificing comfort.
Qualifying Furnaces & Boilers
Heating solutions that meet modern efficiency standards.
Advanced Controls & Upgrades
Smart thermostats and related upgrades that support efficient operation.
How to Claim the 25C Tax Credit
Once your qualifying HVAC system is installed, you’ll follow a few simple steps to claim the 25C tax credit on your federal tax return:
- Save your documentation. Keep all invoices, product details, and installation records from McCall’s.
- Confirm eligibility. We can help provide system information that indicates whether your equipment meets 25C requirements.
- File IRS Form 5695. Use this form when you prepare your federal income tax return for the year the improvements were installed.
- Consult a tax professional. For specific questions about your tax situation or eligibility, always speak with a qualified tax advisor.
McCall’s provides the installation and system documentation you need, but we do not provide tax advice. Eligibility and final credit amounts are determined by the IRS.
Why Upgrade Your HVAC System Now?
Upgrading to a high-efficiency HVAC system that qualifies for the 25C tax credit can provide immediate and long-term benefits for your home and budget:
- Lower monthly heating and cooling costs
- More consistent comfort throughout your home
- Reduced environmental impact with efficient equipment
- Access to federal incentives of up to $2,000
Because the current 25C tax credit is available only through December 31, 2025, it’s a great time to plan your upgrade and take advantage of available savings while they last.
Ready to Maximize Your 25C Tax Credit Savings?
McCall’s is here to help you choose qualifying systems, handle professional installation, and provide the documentation you need for your records. Our comfort specialists can walk you through your options and find the best solution for your home.