If you’ve been thinking about upgrading your home’s heating or cooling system, now may be the time to act. The federal Energy Efficient Home Improvement Credit that helped homeowners save on qualifying heating and cooling installations is set to expire at the end of 2025. This credit has been a major incentive for North Carolina homeowners to invest in high-efficiency systems that improve comfort and lower utility bills.
Here’s what you need to know about what’s changing, how these credits apply to you, and whether you should upgrade your system before time runs out.
What Is the HVAC Tax Credit?
The Energy Efficient Home Improvement Credit (Section 25C) is part of a federal program that allows homeowners to claim up to 30% of the total project cost (including equipment and installation) when they install qualifying high-efficiency systems such as:
• Central air conditioners
• Heat pumps
• Furnaces
• Boilers
• Water heaters
• Insulation and windows
This credit is available for systems placed in service on or before December 31, 2025, meaning your system must be fully installed and operational by that date.
You can read more about qualifying systems and efficiency standards on the IRS Energy Efficient Home Improvement Credit page.
Why Is It Expiring?
The original Inflation Reduction Act extended these tax credits to encourage homeowners to switch to energy-efficient systems. However, many of those provisions will sunset after 2025, meaning homeowners who wait too long could miss out entirely.
Unless Congress extends the program, 2025 is the final year to take advantage of the credit under its current rules. For homeowners in Raleigh, Cary, and surrounding areas, this means there’s just over a year left to install qualifying HVAC equipment and file for the credit.
How Does This Affect Weather Master Homeowners?
For Weather Master customers across central North Carolina, this change could significantly impact your financial planning for home upgrades. Here’s what to consider before the deadline:
1. You Could Save Thousands Right Now
By installing an eligible system before December 31, 2025, you can claim up to 30% of your total project cost (up to certain limits). That’s a direct reduction of your tax liability—not just a deduction.
2. Timing Matters
To qualify, your system must be placed in service before the cutoff date, not just purchased. Scheduling early ensures you have time for equipment delivery, installation, and any required inspections.
3. Energy Savings Add Up
High-efficiency systems not only qualify for the tax credit but also deliver ongoing energy savings that reduce your monthly utility bills. With rising energy costs in North Carolina, investing in a high-efficiency system now can lead to long-term savings.
4. Avoid Last-Minute Rushes
As the deadline approaches, installation demand will rise. Scheduling your replacement now ensures you avoid supply chain delays and price increases as other homeowners race to claim the credit.
Should You Replace Your System Now or Wait?
If your current AC or heating system is 8 years or older, needs frequent repairs, or isn’t keeping your home comfortable, upgrading now is likely the smarter financial decision. You’ll not only avoid an emergency replacement during extreme weather but also qualify for the 2025 tax savings.
However, if your current system is newer, efficient, and performing well, you can use this time to plan ahead—schedule maintenance, track your energy usage, and get professional advice to determine whether a replacement before the deadline makes sense for your home.
How to Claim the Credit
Here’s how homeowners can take advantage of heating/ac and water heater tax credits before they expire:
1. Choose qualifying equipment – Work with a certified contractor (like Weather Master) to ensure your system meets ENERGY STAR efficiency requirements.
2. Complete installation before December 31, 2025 – The system must be installed and operational, not just ordered.
3. Keep documentation – Save receipts, model numbers, and your installation date.
4. Claim the credit using IRS Form 5695 – When filing your 2025 tax return, include all documentation for verification.
Learn more about available tax forms and instructions at IRS.gov.
Why Act Now with Weather Master
Weather Master has helped Raleigh-area homeowners stay comfortable for over 50 years, and our team can help you find a qualifying system that fits your home, budget, and comfort goals. We offer:
• High-efficiency air conditioning and heating systems that meet tax credit requirements
• Expert installation backed by industry-leading warranties
• Convenient financing options to make upgrades affordable
• Transparent advice to help you make the best decision for your home
If you’re considering a new heating or cooling system, don’t wait until the deadline sneaks up. Reach out today to schedule a free consultation at (919) 853-7910 and see how much you could save.
