2025 Heat Pump Tax Credit—How Texas Homeowners Can Claim Up to $2,000
- Charles Runyon
- Apr 20
- 1 min read
The Inflation Reduction Act (IRA) renewed its 25C Residential Clean Energy Credit through 2032. That means up to 30 % of qualified costs—capped at $2,000 per year— back on your 2025 tax return when you install a high‑efficiency heat pump.
Who Qualifies?
Primary residence (owned) in the United States.
Heat pump meets ≥ 15.2 SEER2 / 7.8 HSPF2 or ENERGY STAR “Most Efficient” list.
Installed Jan 1 – Dec 31 2025.
What Counts Toward the Credit?
Expense | Eligible? |
Equipment & refrigerant piping | ✅ |
Labor & permits | ✅ |
Duct upgrades | ❌ (separate credit) |
Step‑by‑Step to Claim
Keep your receipt & manufacturer certificate (we’ll provide).
File IRS Form 5695 with 2025 taxes.
Enter cost in Part II, line 18a (heat pump).
Stacking with Other Incentives
Texas EmPOWER rebate – up to $800 for qualifying units (co‑op members).
Oncor CoolSaver – $120 tune‑up rebate if you upgrade the same year.
Ready to Upgrade?
Get My Free Quote »
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