Are HVAC Tax Credits Going Away?
If you’ve been considering upgrading your home’s heating and cooling system, now might be the best time to do it. Right now, thanks to the Inflation Reduction Act, homeowners can qualify for up to $2,000 per year in federal tax credits when installing certain energy-efficient HVAC systems, including heat pumps and high-efficiency air conditioners . That credit covers 30% of the total cost —equipment and installation—and is currently available through December 31, 2032 , with phaseouts starting in 2033. But that could all change very soon. What’s Happening? Earlier this year, a new piece of legislation, nicknamed the “One Big Beautiful Bill,” passed the U.S. House of Representatives. If it becomes law, this bill would eliminate the HVAC tax credits starting in 2026 , cutting the timeline short by at least 7 years . Right now, this bill is still being debated in the Senate and is not yet law , but it’s gaining momentum—and clean energy advocates are calling it the biggest threat t...