What to Know About Expiring Home Energy Tax Credits

9/8/2025

Big changes are coming to federal energy tax credits, and homeowners need to know how it affects them.

According to the National Association of Home Builders (NAHB), the recently signed One Big Beautiful Bill Act (OBBBA) speeds up the expiration dates for several important energy incentives. While NAHB members are keeping an eye on how the IRS interprets the changes, one thing is clear for homeowners: many of the most common credits will now end much sooner than originally planned.

That means 2025 is shaping up to be a critical year if you’ve been considering energy-efficient improvements for your home.

Breaking It Down in Plain English

The official NAHB overview explains that the government will now begin phasing out incentives like clean energy system credits, insulation upgrades, and efficient HVAC equipment sooner than expected. For example:

  • Section 25D Residential Clean Energy Credit (solar, geothermal, small wind, battery storage) was supposed to run until 2034 — but will now expire after December 31, 2025.
     
  • Section 25C Energy Efficient Home Improvement Credit (insulation, windows, doors, HVAC) was originally extended through 2032 — but will now end after December 31, 2025.
     
  • Other credits for new construction and commercial buildings are also being shortened, with deadlines hitting in 2026 and 2027.
     

The bottom line? If you want to use these tax credits to offset the cost of making your home more comfortable and efficient, you’ll need to act before 2025 ends.

What Homeowners Can Still Take Advantage Of in 2025

Here’s where the opportunity comes in: there are still generous incentives available in 2025 — and Atlas can help you get them before they disappear.

HVAC Upgrades

Heat Pump Water Heaters

  • Up to $2,000 back
     

Insulation, Air Sealing, and Duct Sealing

  • Combined credits of up to $1,200
     

Home Energy Audits

  • Eligible for a credit as part of the above $1,200 cap
     

These credits can really add up — especially when combined with HVAC factory rebates and the Atlas Get Comfy Fall Special.

Timing Is Everything

One important detail: the work has to be completed in 2025 in order to qualify for these tax credits. That means waiting until late next year to start the process could put you at risk of missing out entirely.

If you’ve been living with an upstairs bedroom that’s too hot, a basement that’s too cold, or a house that never quite feels as efficient as it should, this could be the perfect moment to make a change.

Atlas is here to answer questions, walk you through what qualifies, and help you make the most of the credits while they’re still available.

Let’s Talk About Your Options

Atlas Home Energy Solutions
Helping families bring comfort home — and keep more money in their pockets.