Federal HVAC Tax Credits After 2025
Published 2026-03-19 · Reviewed 2026-08-02
The federal section 25C HVAC credit does not apply to property placed in service after December 31, 2025. Review the cutoff and current alternatives.
For residential HVAC property placed in service in 2026, the federal Energy Efficient Home Improvement Credit under section 25C is no longer available. IRS guidance says the credit is not allowed for property placed in service after December 31, 2025.
Key Takeaways
- A 2026 installation does not qualify for the former federal section 25C HVAC credit under current IRS guidance.
- The cutoff is based on when qualifying property was placed in service, not merely when it was ordered or paid for.
- State, utility, manufacturer, or income-qualified programs may still exist, but they have separate rules and funding limits.
- Keep contracts, invoices, model numbers, AHRI certificates, and program approvals for any incentive you pursue.
What Changed for 2026 HVAC Projects
Older articles may describe a federal credit of up to $2,000 for qualifying heat pumps and lower caps for other equipment. Those amounts applied only under the prior law and should not be used to budget a system placed in service in 2026.
What to Check Before You Buy
- Confirm the installation date
Ask when the equipment will be installed and ready for use. That date matters for time-limited programs.
- Check current local programs
Use the official DC, Maryland, or Virginia program page for your address and utility territory. Do not rely on an old contractor flyer or search snippet.
- Get eligibility in writing
Confirm the exact model combination, efficiency certificate, contractor requirements, permit rules, deadlines, and available funding before signing.
How this guide is sourced
Consequential official guidance is linked where available. Dollar figures are internal model-based planning ranges, not sampled local averages or contractor quotes.