Big Changes to Energy Tax Credits: Act Before They Expire!

If you've been considering upgrading your home’s heating and cooling systems—or investing in a wood stove or geothermal unit—now is the time to act. Recent federal legislation has changed the landscape for energy-related tax credits, and two major incentives are set to expire at the end of 2025.

What Energy Tax Credits Are Ending?

✅ 25D Residential Clean Energy Credit

This credit has helped homeowners save on geothermal systems for years. Unfortunately, it will expire on December 31, 2025, meaning no credit for systems installed after that date.

✅ 25C Energy Efficient Home Improvement Credit

This credit covers upgrades like:

• Heat pumps

• High-efficiency air conditioners and furnaces

• Water heaters

• Biomass stoves and wood inserts

These too must be installed by the end of 2025 to qualify.

Key Expiration Dates:

Section 25C – Energy Efficient Home Improvement Credit: Expires for projects placed into service after December 31, 2025.

Section 25D – Residential Clean Energy Credit: Expires for projects placed into service after December 31, 2025.

Section 45L – New Energy Efficient Home Credit: Expires for homes purchased after June 30, 2026.

Section 179D – Commercial Building Energy-Efficiency Deduction: Expires for construction projects beginning after June 30, 2026.

Why This Matters

If you're planning to install a qualifying system, you must act soon to ensure it's in place before the deadline. For example, not all wood stoves qualify, but we can help you choose the right one and provide the necessary documentation.

We also offer over-the-counter sales at our offices for qualifying wood stoves and inserts—perfect for DIYers or those working with independent installers.

Questions?

We’re here to help you navigate these changes and make the most of the remaining time. Contact us today to learn which products qualify and how to get started.

📞 (812) 866-2400

🌐 www.steinhardtcomfort.com

*Be sure to contact your tax professional about the best options for you and your family.