Last Chance to Take Advantage of Expiring HVAC Tax Credits

As 2026 approaches, homeowners in Washington still have a unique opportunity to save big on energy-efficient upgrades on your HVAC products through the Inflation Reduction Act (IRA).

But time is running out—these incentives expire on December 31, 2025. Whether you’ve been thinking about upgrading your furnace, investing in a new air conditioner, or want to install a new heat pump, now is the time to act.

Taking advantage of these tax credits before they’re gone can save you hundreds—or even thousands—of dollars while setting your home up for long-term comfort and efficiency. Our team at Ballard Natural Gas Service will help you every step of the way.

What Is the Inflation Reduction Act?

Signed into law in 2022, the IRA was designed to help homeowners invest in more energy-efficient equipment by offering significant tax credits. By reducing the upfront cost of new systems, the government encourages upgrades that cut carbon emissions and lower energy bills.

Homeowners who make qualifying purchases before the deadline, can claim a portion of the project cost as a tax credit, meaning direct savings come tax season.

Unlike a deduction, which lowers your taxable income, a tax credit reduces what you owe in taxes dollar-for-dollar. That makes these incentives extremely valuable if you’re planning a major home upgrade.

What Tax Credits Are Ending on December 31?

Several credits available under the IRA are set to expire at the end of the year. Here’s a breakdown of some big-ticket items that you can claim if you act quickly:

• Air Conditioners – 30% of the project cost, with a tax credit capped at $600.
• Heat Pumps – 30% of the project cost, capped at $2,000.
• Furnaces – 30% of the project cost, capped at $600.
• Electrical Panel Upgrades – 30% of the project cost, capped at $600.

If you’ve been delaying one of these upgrades, December 31 is your last chance to maximize savings before the incentives disappear.

Why These Upgrades Are Worth Considering

Even without tax credits, energy-efficient systems save money over time. Furnaces and air conditioners account for a large portion of monthly utility bills, and older models often waste energy.

Replacing them with new, efficient equipment can dramatically lower your costs. Heat pumps, in particular, are one of the smartest long-term investments, as they handle both heating and cooling while consuming less energy than traditional systems.

An upgraded electrical panel is another smart move. Modern homes use more energy than ever before to power appliances, electronics, and electric vehicles. By upgrading your panel, you’ll not only qualify for the tax credit but also ensure your home can safely handle today’s electrical demands.

How to Make the Most of the Incentives

To maximize your savings, it’s essential to plan strategically. Start by evaluating which upgrades your home needs most. For example, if your HVAC system is older than 10 years or constantly breaking down, replacing it now could save you repair costs, reduce monthly energy bills, and earn you a credit at tax time.

Next, work with a trusted local contractor like Ballard Natural Gas Service to confirm which models qualify. Not all equipment meets the efficiency standards required by the IRA, so professional guidance is crucial. A certified dealer can also ensure proper installation, which is key to getting the full benefit of your new system.

Finally, don’t wait until the last minute. With the December 31 deadline quickly approaching, contractor schedules are likely to fill up. The earlier you schedule, the better your chances of completing your project in time to qualify.

Why Acting Now Matters

Energy-efficient upgrades are not just about comfort—they’re about long-term financial and environmental benefits. By taking action now, you can reduce your carbon footprint, cut your utility bills, and enjoy peace of mind knowing your home’s major systems are reliable for years to come. Missing out on these incentives could mean spending thousands more in the future for the same upgrades.

Think of it this way: If you’ve been on the fence about upgrading, the government is essentially offering to cover part of the cost. But that offer won’t last forever. By acting before the deadline, you’re putting money back in your pocket while improving your home’s comfort and efficiency.

Take Advantage Before It’s Too Late

December 31 is fast approaching, and with it, the chance to save big on critical home upgrades. If your furnace, air conditioner, or electrical panel is due for replacement, now is the time to act. And if a heat pump has been on your radar, this incentive may be the final push you need to make the switch.

Work with a trusted local contractor to explore your options, confirm eligibility, and schedule your installation. By taking steps today, you’ll not only secure valuable savings but also enjoy a more comfortable, efficient, and sustainable home for years to come. Call Ballard Natural Gas Service at 206-784-8101 or request service online to learn what efficient options are available today.