Money, Code & Licensing

What Is Federal 25C / 25D Tax Credit (ended 2025)?

Definition

The federal 25C (Energy Efficient Home Improvement) and 25D (Residential Clean Energy) tax credits offered up to $2,000 for qualifying heat pumps and heat pump water heaters, plus other home-efficiency credits — until the July 2025 federal budget act terminated both for equipment placed in service after December 31, 2025.

Why it matters for your home

If a 2026 bid or ad still promises a federal tax credit on new HVAC or water heating equipment, that's out of date — both credits are gone for new installs, and only the utility/state incentive layer remains.

What to do about it

Ask hard questions if a 2026 bid dangles a federal tax credit — verify against the rebates & incentives guide rather than taking the claim at face value.

Money term — the details

Is there any way to still claim 25C or 25D in 2026?

Only if the equipment was actually placed in service on or before December 31, 2025 — for any 2026 installation, both credits are unavailable regardless of when it was ordered or quoted.

What incentives are left after these credits ended?

The utility and state layer — Energy Trust of Oregon incentives, PGE programs, and Oregon Department of Energy programs where funding allows — see the rebates & incentives guide for what's currently active.

See it in context Rebates & Incentives

Sources

This definition is pending licensed-trade technical review. It's sourced from our own published service and guide content, not invented — but hasn't yet been signed off by a licensed HVAC reviewer.

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