If you've been putting off replacing your system because you were waiting to line up a tax credit, stop waiting. It's gone.
What happened
The federal Section 25C Energy Efficient Home Improvement Credit ended for anything placed in service after December 31, 2025.
It was originally written to run through 2032 under the Inflation Reduction Act. Public Law 119-21, signed 4 July 2025, cut it short. There was no phase-down — it didn't step down over a few years the way credits usually do. It stopped.
The IRS has published guidance on the change, and ENERGY STAR's own page now lists the credit as applying to products "purchased and installed between January 1, 2023, and December 31, 2025."
If you installed in 2025, you may still be able to claim it
The cutoff is when the equipment was placed in service, not when the rule changed. If your system was installed and running on or before 31 December 2025, it may still be claimable on your 2025 return.
You'd need the AHRI certificate or reference number for the matched pair, the manufacturer's certification statement, and your invoice. Talk to whoever does your taxes — don't take a website's word for it, including this one.
What the credit actually was
Worth knowing, because it explains why fewer people got it than expected:
- 30% of the project cost, capped at $600 per air conditioner
- Part of a $1,200 annual aggregate shared with furnaces, insulation, doors and windows
- Split system central AC had to hit SEER2 ≥ 17.0 and EER2 ≥ 12.0
- Packaged units had to hit SEER2 ≥ 16.0 and EER2 ≥ 11.5
Being straight with you: our equipment wouldn't have qualified anyway
We'd rather tell you this now than have you find out from your accountant.
Most of what we sell — and most of what gets installed in Florida — is baseline-efficiency equipment. Our Everwell CAC-15 line is 14.3 SEER2 and 11.70 EER2. Our RunTru systems are 14.3 and 15.2 SEER2.
The credit required 17.0 SEER2 and 12.0 EER2. None of our central systems would have met that even while the credit existed.
That's not a knock on the equipment. A 14.3 SEER2 system is current-generation, R-454B, AHRI certified, and it's what the overwhelming majority of homes get installed. The credit was aimed at the top of the efficiency range, and it was $600 against a project that costs thousands.
If someone is selling you a system in 2026 on the strength of a federal tax credit, ask them which credit, and ask them for the code section.
What's actually left
The federal credit is gone, but incentives didn't disappear entirely — they moved to the state and utility level.
Check two places:
- DSIRE — dsireusa.org. A database of state, local and utility incentives, searchable by ZIP code. The most complete list there is.
- Your own electric utility. In Florida that's usually FPL, Duke, TECO or a municipal provider. Many run their own rebates on efficiency upgrades, and they're often easier to qualify for than the federal credit ever was.
Utility rebates frequently require the AHRI certified reference number for your matched system. Ask for it before the job is done — chasing it afterwards is harder than it should be. More on that in why an AHRI-matched system matters.
One thing that hasn't changed
The efficiency of the system you buy still affects your power bill every month for the next fifteen years. That math didn't depend on the tax credit and it doesn't change now that it's gone.
If you're deciding between efficiency tiers, decide on the operating cost and what the equipment is worth to you — not on an incentive that no longer exists.
We're not tax advisers
Everything here is a plain reading of published federal guidance as of August 2026. We sell equipment; we don't prepare returns. Before you claim anything, or skip claiming something, talk to a tax professional about your own situation.
Sources: IRS guidance on Public Law 119-21 (irs.gov), ENERGY STAR federal tax credit pages (energystar.gov).
Questions?
If you want to know what a specific system's SEER2 and EER2 actually are, or whether a pair is AHRI matched, call or email. We'll give you the real numbers.
(239) 266-9766 · sales@hvacsupplypro.com