How the 25C Energy Efficient Home Improvement Tax Credit Works

The 25C Energy Efficient Home Improvement Tax Credit is a federal incentive designed to make energy-saving upgrades more affordable for homeowners. With this credit, you can save up to $2,000 on qualifying heat pump installations, just one of the many ways to reduce your out-of-pocket investment. In addition to HVAC upgrades, the credit can also be applied to improvements like insulation, high-efficiency water heaters, and advanced electrical panels.

To qualify, your upgrades must be installed in an existing U.S. primary residence, not new construction or rental properties. Eligible equipment must meet strict efficiency guidelines set by the Consortium for Energy Efficiency (CEE). This is where our expertise comes in—Barron Heating AC Electrical & Plumbing will help you choose systems that meet the criteria and guide you through the process of claiming your tax credit. With no lifetime cap, you can continue claiming credit each year for additional qualified improvements.

Local Utility Rebates and Incentives for Extra Savings

Beyond federal tax credits, many local utilities offer their own rebates for energy-efficient upgrades. In Northwestern Washington, programs through Puget Sound Energy, Cascade Natural Gas, and other providers can offer hundreds or even thousands of dollars in rebates for high-efficiency appliances, water heaters, HVAC systems, and smart thermostats. These rebates often stack with federal credits, amplifying your total savings.

Barron Heating AC Electrical & Plumbing stays current on available programs and requirements so you don’t have to. Our team will ensure your system qualifies, handle any necessary documentation, and walk you through the submission process. Whether you’re upgrading a single component or planning a full system overhaul, we help you get the most value out of every improvement.

We Help You Choose the Right Equipment and File for Savings

Navigating tax codes and rebate forms can feel overwhelming, but that’s where we come in. At Barron Heating AC Electrical & Plumbing, we make it easy. From product selection to final installation, we ensure you meet all program requirements and keep the documentation you’ll need when filing with the IRS or applying for rebates.

We’ll help you complete IRS Form 5695 to claim the 25C tax credit and provide any technical specifications required by local utilities. Our Home Performance Experts are here to answer your questions, evaluate your home, and recommend the upgrades that deliver the greatest comfort—and the best return on investment. If you’re planning phased improvements over several years, we can even help you time your upgrades to take full advantage of recurring annual credits.

Contact our Bellingham Home Performance Experts for quality services today! We’ve proudly served the I-5 corridor from Blaine to Marysville, Oak Harbor to Concrete, and the San Juan Islands since 1972. Our Mission: Improving Lives™.