Act Now! Federal Tax Credits for Home Energy Improvements Soon Expire

Effective September 1, you essentially have four months to save up to $3,200 on essential home improvements.

Now is your best chance to install a new furnace, AC unit, ductless mini split, heat pump water heater, electrical panel—or other types of HVAC, electrical, and plumbing equipment—and receive a federal tax credit to help offset the cost.

At Mason Pro Services, we are committed to helping homeowners in Fountain Hills, and all the surrounding areas get the best bang for their buck when investing in new heating and cooling equipment.

The 25C Energy Efficient Home Improvement Credit is an excellent way to keep more money in your pocket while improving home comfort. However, all eligible home upgrades must be complete by December 31, 2025, to qualify for the tax credit.

Our Mason Pro Services experts can recommend the best heating unit, cooling equipment, or a complete comfort system for your Maricopa County home. We will determine an installation date that suits your schedule and ensure the new system is installed and operating before the tax credit expires.

Call us at Mason Pro Services for a no-obligation consultation and estimate. We aim to help you maximize your savings and home comfort.

Big Change to 25C Tax Credits

We have shared information about the Inflation Reduction Act (IRA) of 2022 for months. This landmark legislation made clean energy and home efficiency improvements more affordable for American families. A key part of the IRA was the extension of the 25C tax credit, which was initially set to expire in 2032.

However, a recent legislative change has dramatically cut this timeline short. Under the new law, the tax credit expires on December 31.

Time is of the essence if you want to claim your savings.

What the 25C Tax Credit Covers

The 25C tax credit enables you to save on qualifying energy-efficient home upgrades. It offers a credit for 30 percent of the cost of eligible upgrades, with specific annual limits for different types of improvements.

You can claim a maximum of $3,200 on your 2025 federal taxes for all eligible 25C improvements. Here is a breakdown of what the credit covers, with a special focus on the most common HVAC upgrades:

• AC units, Furnaces, and Boilers: 30 percent of costs, up to $600 per item, with an overall limit of $1,200 for these items.
• Heat pumps and Ductless Mini Splits: 30 percent of costs, up to a limit of $2,000
• Electric Panel Upgrades: 30 percent of costs, up to a limit of $600
• Insulation and Air Sealing: 30 percent of costs, up to a limit of $1,200
• Exterior Windows and Skylights: 30 percent of costs, up to a limit of $600
• Exterior Doors: 30 percent of costs, up to $250 per door, with a limit of $500
• Home Energy Audits: Up to $150

You can claim up to $1,200 on your 2025 taxes for a new central air conditioner and furnace, or install a heat pump, which provides comfort year-round, and claim up to $2,000. In either case, you get a fantastic opportunity to upgrade your home’s most vital comfort systems.

Timing Is Everything

Considering the high demand and the scheduling that typically goes into a major HVAC installation, we recommend you schedule HVAC replacements now.

As the deadline approaches, we expect a significant increase in homeowners trying to secure their installations. The flood of installation requests could lead to longer wait times for quotes and scheduling, and potential delays in getting the equipment you want.

By starting the process now with Mason Pro Services, you get ahead of the crowd, and we will complete your project in time to qualify.

What You Need to Do

At Mason Pro Services, we are ready to help you navigate this process from start to finish. Our team of professionals is knowledgeable about the latest regulations and can help you select a qualifying system that meets your heating and cooling needs and budget.

When you complete your federal taxes next year, you will file IRS Form 5695, Residential Energy Credits, with your 2025 federal tax return.  It’s crucial to keep meticulous records of your expenses, including invoices, receipts, and manufacturer certifications for the eligible products.

This year, the Internal Revenue Service (IRS) requires homeowners to enter a product identification number (PIN) on their Form 5695. Each qualified manufacturer with products eligible for the tax credit has a PIN. We can assist you with identifying the correct manufacturer PIN for the HVAC equipment you purchase from us. We also strongly recommend consulting a qualified tax professional to ensure you meet all requirements for claiming the credit.

Visit ENERGY STAR®for details on qualified HVAC units.

Schedule HVAC Upgrades Now!

Our desert climate in Fountain Hills constantly reminds us why reliable and efficient home HVAC systems are essential. By upgrading now, you not only improve your daily comfort and reduce your energy bills, but you also take advantage of a federal incentive that is about to disappear forever.

Start planning your energy-efficient projects today to take full advantage of the federal incentive before it expires. Let Mason Pro Services schedule a consultation and give you a free, no-obligation quote. The clock is ticking—let us help you secure your savings before time runs out! Call us at 480-359-3528 or request service online.