If you’re considering electrification, an energy-efficient HVAC upgrade or geothermal installation or upgrading your current alternative energy system, now is the time to act. The One Big Beautifull Bill recently signed by the President is eliminating two programs that were created to help families make clean energy improvements more affordable.
These two key federal tax incentives—Section 25C and Section 25D—are set to expire for projects starting after December 31, 2025. Once they’re gone, so are the savings.
Sensible has ways to take advantage of these cost savings and all you have to do is get your electrification started before the end of the year.
What You’re About to Lose:
Section 25C – The Energy Efficiency Home Improvement Credit
- Up to $3,200/year in tax credits
- $1,200/year for high-efficiency HVAC equipment & upgrades
- Includes limits like $600 for windows/skylights, $500 for doors, and $150 for home energy audits
- $2,000/year for heat pumps, water heaters, biomass stoves or boilers
Section 25D – The Residential Clean Energy Credit
- A 30% federal tax credit for geothermal heat pump systems
- This credit can save homeowners thousands of dollars on new geothermal installations
Why This Matters:
Homeowners across Colorado have taken advantage of these incentives to make their homes more comfortable, efficient, and eco-friendly—while saving money up front and for years to come.
But after December 31, 2025, these tax credits will no longer be available for new projects. If you’re planning a system upgrade in the next 18 months, starting now ensures you don’t miss the deadline.
How Sensible Can Help:
At Sensible Heating & Cooling, we’ll guide you through every step:
- Evaluate your home’s geothermal or HVAC options
- Provide a clear estimate of your potential tax savings
- Find other rebates and incentives still available, including Xcel’s rebates on Electrification
✅ Start your home upgrade now while incentives are still available.
Get in touch with our Sensible team today!
We have integrity. We build trust. We give you comfort.
