At Canyon Plumbing & Heating, we do more than provide expert HVAC and plumbing services—we help you maximize your savings. Whether you’re upgrading your furnace, switching to a heat pump, or improving your home’s insulation, our rebate and tax credit experts are here to ensure you get every dollar you’re eligible for.
Thanks to current federal energy incentives available through December 31, 2025, homeowners can receive up to $3,200 in tax credits annually for qualifying upgrades. These savings apply to a wide range of projects, including high-efficiency HVAC systems, water heaters, insulation, electrical panel upgrades, and clean energy installations.
What Upgrades Qualify for Federal Tax Credits?
The Energy Efficient Home Improvement Credit provides a 30% tax credit on a variety of energy-efficient upgrades such as:
- Heat pumps and heat pump water heaters
- Insulation and air sealing improvements
- ENERGY STAR® certified windows, doors, and skylights
- Natural gas, propane, or oil furnaces and boilers
- Central air conditioners
- Electrical panel and circuit upgrades
- Home energy audits (up to $150)
Additionally, the Residential Clean Energy Credit offers a 30% tax credit on the cost of clean energy systems, including:
- Solar panel installations
- Geothermal heat pumps
- Small wind turbines
- Battery storage systems
- Fuel cells
How Canyon Plumbing Makes It Simple
We understand the IRS rules, eligibility criteria, and product requirements can be overwhelming. That’s why we handle the fine print for you. Our team ensures:
- Your selected equipment meets the required efficiency ratings
- Your installation includes products from qualified manufacturers
- You receive all necessary documentation for your tax return
- You’re informed about current and upcoming rebate programs
Your upgrades are planned to maximize annual tax savings without exceeding limits
For example, you might upgrade your insulation and complete a home energy audit in one year, then install a heat pump the next year—giving you the full tax credit each time without going over the yearly threshold.
Important Updates for 2025
Beginning in 2025, the IRS requires that manufacturers provide a Qualified Manufacturer (QM) code for certain products. This code must be included on your tax return when claiming credits for:
- Heat pumps
- Water heaters
- Furnaces and boilers
- Windows and doors
- Electrical panels
Canyon Plumbing stays current with these evolving requirements so you don’t have to. We’ll ensure that every product we install is properly documented with the necessary QM code for your tax filing.
Who Qualifies?
To claim energy-efficient tax credits, your home must be located in the United States. Primary residences are eligible for all credits, and some upgrades may apply to second homes or rentals (if you’re the one paying for the improvement). These tax credits are nonrefundable and apply only to the amount of federal tax you owe.
Frequently Asked Questions
What types of upgrades qualify for tax credits?
Qualifying upgrades include high-efficiency HVAC systems, heat pumps, insulation, doors, windows, energy audits, water heaters, solar systems, and more.
Can I claim the tax credit for a second home or rental property?
Some improvements qualify for second homes used part-time. Renters can also claim certain credits if they pay for the upgrades themselves. Landlords who do not live in the home are not eligible.
How do I claim these tax credits?
You must submit IRS Form 5695 with your federal tax return for the year in which the installation was completed. We’ll provide all the supporting documentation you need.
Are there any limits on how much I can claim?
You can claim up to $3,200 per year in combined tax credits: $2,000 for heat pump technology and $1,200 for other improvements. Clean energy systems like solar have no annual cap.
Do rebates apply on top of tax credits?
Yes! In many cases, local utility rebates can be combined with federal tax credits for even more savings. We’ll help you identify and apply for all eligible programs.
Maximize Your Savings with Canyon Plumbing & Heating
Rebates and tax credits don’t have to be confusing. With Canyon Plumbing & Heating, you get a partner who understands both the technical and financial sides of your home upgrades. Our team is here to help you save money, increase energy efficiency, and invest confidently in your home’s future.
Ready to start saving?
Contact Canyon Plumbing & Heating today to schedule your consultation or request more details about available incentives. We'll make sure you don’t miss a single opportunity to cut costs and boost comfort.