BIG Changes to Federal HVAC Tax Credits: What Austin Homeowners Need to Know Before the End of 2025

If you’ve been considering replacing your aging HVAC system, there’s an important deadline you need to know about — and it could save you up to $2,000.

This summer, a new piece of legislation — informally called the “Big Beautiful Bill” — was signed into law. Among many changes, it officially ends key federal tax credits for energy-efficient HVAC systems after December 31, 2025. These credits were originally part of the Inflation Reduction Act (IRA), and they’ve helped thousands of homeowners make smart, affordable upgrades to their heating and cooling systems.

But with this new law in place, the clock is ticking.

What’s Changing?

Under the current rules (which end in 2025), homeowners can get:

• Up to $2,000 in federal tax credits for installing high-efficiency HVAC systems — like heat pumps, energy-efficient ACs, or furnaces.
• Additional savings from rebates and utility programs, like Austin Energy’s home energy audits.

With the passage of the Big Beautiful Bill, these tax credits will expire for any HVAC system installed after December 31, 2025. That means if you wait until 2026 or later, you may miss out on significant savings.

What This Means for Austin & Georgetown Homeowners

We know that replacing your HVAC system is a big decision. But if your system is over 10 years old, now is the time to seriously consider an upgrade. Why?

• You’ll save money with the current tax credit while it’s still available.
• You’ll avoid emergency breakdowns by replacing your system on your terms.
• You’ll enjoy better comfort and lower energy bills with today’s more efficient systems.

Plus, at McCullough Heating & Air Conditioning, we can help you navigate financing options as low as $72/month and 0% interest plans for qualified customers. And we’ll make sure you get every rebate and incentive you qualify for — before they disappear.

Time Is Running Out

If you’re planning on replacing your system “someday,” someday needs to be before the end of 2025. That’s when the federal tax credits expire, and with them, up to $2,000 in savings.

We expect high demand as the deadline approaches, so schedule your free estimate or energy audit consultation now to lock in your spot on the schedule.