If you’ve been thinking about installing a heat pump, now’s the time! Heat pumps are currently eligible for a federal tax credit that can save you $2,000 on your installation costs. But not for much longer.
The heat pump tax credit expires on December 31, 2025. To qualify, you need to install your heat pump before the last day of the year.
Here’s everything you need to know about the heat pump tax credit and how to claim your savings before it’s too late.
What Is the Heat Pump Tax Credit?
The heat pump tax credit is a federal incentive that makes energy efficiency upgrades like heat pumps more affordable for homeowners to install. Formally known as the Energy Efficient Home Improvement Credit (25C), the heat pump tax credit allows you to claim 30% of your heat pump costs, up to $2,000, back on your federal income taxes. Plus, you can stack it with additional tax credits for insulation, air sealing, and windows to save a total of $3,200.
You can claim the heat pump tax credit for:
- Ducted heat pumps
- Ductless mini split heat pumps
- Heat pump water heaters
Not every system qualifies, so it’s important to make sure your equipment meets the efficiency standards outlined in the tax code. At A-1 Guaranteed, we handle this step for you. Our team will verify eligibility before installing your new heat pump so you don’t miss out on savings.
What’s Changing?
The heat pump tax credit was originally slated to last through 2032. But a new law brings major changes to the credit. Now, it will end on December 31, 2025. Heat pump installations completed in 2026 and beyond will no longer be eligible.
That means you only have a few months left to install a heat pump before the tax credit expires. Our team is ready to help you take advantage of this opportunity to save $2,000 on a new heat pump before it’s too late. Reach out to us today to get started. We’ll help you decide whether a heat pump makes sense for your home and schedule your installation quickly so you can claim your savings.
How to Claim the Heat Pump Tax Credit in 2025
The good news is that there’s still time to claim the heat pump tax credit. But it’s running out. Here’s what you need to do if you don’t want to miss out:
- Get a Quote Today
The most important thing is to start soon. The end of the year is coming up fast, and as the deadline gets closer, our schedule is filling up quickly.
- Install Before December 31, 2025
To qualify, your heat pump system must be fully installed before the deadline. If the work isn’t complete, you won’t be eligible for the credit. At A-1 Guaranteed, we’re booking now to ensure our customers make the cutoff.
- File IRS Form 5695 with Your 2025 Taxes
When tax season rolls around, simply file IRS Form 5695 with your 2025 return. We’ll provide the documentation you need to make the process simple.
Don’t miss out! Call [custom:phone-number] today to schedule your heat pump installation before federal tax credits expire.
This material is provided for informational purposes only. Always consult a tax professional about your specific situation.
