Federal Tax Credits for Home Energy Improvements Expire Soon
Don't Miss Out!

Between now and December 31, 2025, you can save up to $3,200 on essential home improvements.

Now is your best chance to install fresh insulation, a new furnace and heat pump, or heat pump water heater—and receive a federal tax credit to help offset the cost.

At Better World Builders, we are committed to helping homeowners in Kalamazoo, MI, and the surrounding areas get the best value for their money when investing in new heating and cooling equipment.

The 25C Energy Efficient Home Improvement Credit is an excellent way to save money while improving home comfort. However, to qualify for the tax credit, insulation and eligible HVAC units must be in service by December 31, 2025.

Our professionals at Better World Builders can recommend the energy savings solutions and indoor air quality (IAQ) equipment for your Kalamazoo 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 269-383-7862 for a no-obligation consultation and estimate. We aim to help you maximize your savings and home comfort.

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
• Heat Pump Water Heaters: 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
• 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 insulation and major HVAC installation, we recommend you schedule HVAC replacements now.

As the December 31 deadline approaches, we expect a significant increase in Michigan 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 Better World Builders, you get ahead of the crowd, and we will complete your project in time to qualify.

What You Need to Do

At Better World Builders, 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 Home Comfort Upgrades Now!

Our seasonal temperatures in Kalamazoo, MI, constantly remind us why reliable insulation 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 Better World Builders 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 (269) 383-7862 or request service online.