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2025 Efficiency Home Improvement Energy Tax Credit 25C
Home Energy Tax Credit
The 25C tax credit information:
Amendments Include:
* 30% of cost up to $600 (or $2,000 for HPs)
*Gas furnace and air conditioner can be combined for a total credit up to $1,200.
*Qualifying Units meet or exceed the highest efficiency tier that is not the advanced tier.
(See Chart Above if your equipment qualifies)
What’s New for 2025
- Starting with the 2025 tax filing season, homeowners must include a Product Identification Number (PIN) on their federal tax return for each qualifying HVAC product installed in 2025 or later. (Each manufacture will have their own PIN)
- The Lennox Manufacturer PIN is L7S0 (L, Seven, S, Zero).
How Homeowners Use the PIN - Where to Enter It: Homeowners will enter the 4-character PIN directly on IRS Form 5695 (Residential Energy Credits), which is submitted with their federal tax return.
- No PIN = No Credit: If the PIN is missing or incorrect, the IRS will not accept the claim, even if the product otherwise qualifies.
HR1 or “The One Big Beautiful Bill Act” was passed by Congress and signed into law on July 4, 2025. The bill addressed tax cuts, spending increases, and policy changes, which impacted the 25C Energy Efficient Home Improvement Credit for residential furnaces, air conditioners, and heat pumps, by accelerating their termination dates. Specifically, the 25C credit, which provides tax incentives for homeowners to make energy-efficient upgrades, will expire for property placed in service after December 31, 2025.
Homeowners can still take advantage of the 25C tax credits on qualifying HVAC equipment and systems if they purchase and install before December 31, 2025.
When a homeowner is debating repairing or replacing their system in 2025, this is a good opportunity to replace while these tax benefits are still available.