HVAC and Home Energy Tax Credits Are Ending Soon - What You Need to Know
- JD Air
- 7 days ago
- 3 min read
Updated: 5 days ago
If you’re a homeowner, real estate agent, contractor, or estate manager, this article is for you! 2025 is your last year to claim valuable tax credits and rebates for HVAC and energy-efficient upgrades.
In July 2025, President Trump signed the One Big Beautiful Bill Act, which rolled back key clean energy incentives — including the $2,000 federal HVAC tax credit. It also eliminated programs that hadn’t yet launched, including a highly anticipated $14,000 rebate that many homeowners were waiting for.
Don’t wait until next year. These rebates and tax credits are going away. Now is the time to upgrade your furnace, air conditioning, water heater, or heat pump — and still get money back.
What You Can Still Claim in 2025 for HVAC Upgrades
FEDERAL TAX CREDIT
Federal HVAC Tax Credit (IRC §25C) – Ends December 31, 2025
Value: Up to $2,000 in tax credits for:
High-efficiency heat pumps
ENERGY STAR® air conditioners, furnaces, and boilers
Who applies: Homeowner, claimed on 2025 federal tax return (IRS Form 5695)
When you get the money: As a tax credit in early 2026 when you file your 2025 return
Deadline: Equipment must be installed and paid in full by December 31, 2025
LOCAL TAX REBATES AND CREDITS IN THE DMV
If you are a homeowner in the DMV, here are the local tax rebates and credits that you can take advantage of in DC, Maryland, and Northern Virginia. Hurry...some are expiring very soon!
Washington, DC – DCSEU HVAC Rebates (Ends September 30, 2025)
Value: Up to $5,000 for qualifying heat pumps and AC systems
Who applies: Contractor applies on behalf of the homeowner
When you get the money: 4–6 weeks after rebate processing
Deadline: Must be installed by September 30, 2025
Maryland – EmPOWER Utility Rebates
Value: $300–$1,500+, depending on system type and efficiency
Utilities Participating: BGE, Pepco, Potomac Edison (through EmPOWER Maryland)
Who applies: Homeowner or contractor (via utility websites)
When you get the money: Typically 6–8 weeks after submission
Deadline: Rolling basis; apply immediately after installation
Sources:
BGE Rebates and Discounts
Maryland - Montgomery County – Local Tax Credit
Value: $250 tax credit for energy-efficient improvements (HVAC, windows, insulation)
Who applies: Homeowner (Section 2 of the form – Energy Conservation Devices)
When you get the money: As a credit applied to your property tax bill
Deadline: Fiscal year (July 1 – June 30); capped at $100,000/year, so apply early
Sources:
Overview: Montgomery Energy Connection Tax Credit
Virginia – Washington Gas Rebates (Furnaces, Boilers, Water Heaters)
Home Heating Rebates
Value:
Up to $400 for ENERGY STAR® furnaces
Up to $700 for ENERGY STAR® boilers
Who applies: Contractor from the Washington Gas Home Energy Savings Contractor Network
When you get the money: 4–8 weeks after application is submitted
Eligibility: Virginia Washington Gas customers
Virginia – Water Heater Rebates
Value:
$100–$150 for ENERGY STAR® storage water heaters
$350–$400 for ENERGY STAR® tankless water heaters
Who applies: Contractor submits rebate after install
When you get the money: 4–8 weeks
Eligibility: Virginia Washington Gas customers
Source: Virginia Energy Sense
❌ Not Coming: The $14,000 HEEHRA Rebate
Many homeowners were waiting for the launch of the High-Efficiency Electric Home Rebate Act (HEEHRA) — a federal program promising up to $14,000 in point-of-sale rebates for energy-efficient upgrades.
As of July 2025:
This program has not launched in DC, Maryland, or Virginia
The One Big Beautiful Bill Act eliminated or pulled back funding
Conclusion: This rebate is very unlikely to happen in the DMV
Don’t wait on this. Homeowners who held off in 2024 hoping for this rebate may now miss out on everything.
Why This HVAC Tax Rebate and Credit Information Matters
These rebates and credits can add up to thousands of dollars — but they’re disappearing after this year. Between federal rollbacks and annual funding limits, 2025 is your final guaranteed year to claim these benefits.
At JD Air, we install:
High-efficiency heat pumps, furnaces, and central AC
ENERGY STAR® water heaters
Smart thermostats
Don’t Wait to Upgrade your HVAC — Get Paid to Upgrade
2025 is your last, best chance to:
Upgrade to a more efficient, environmentally friendly system
Stay comfortable year-round for the next 10–15 years
Save on your energy bills — and still get money back
Get an Instant Estimate Now — or call JD Air (202-780-6247) to get a free estimate and schedule your rebate-eligible install while funds are still available.
JD Air, LLC
Your HVAC Installers in the DMV
202-780-6247