Time is running out! If you’re a Las Vegas homeowner looking to upgrade your HVAC system, understanding which heat pumps qualify for tax credits can save you thousands of dollars – but only if you act before December 31, 2025. At Doctor Heat Pump, we help families throughout the Las Vegas area navigate federal tax incentives while finding the perfect heat pump system for their homes. With the recent passage of the “One Big Beautiful Bill,” specific residential heat pump tax credits are ending after 2025, making it critical to know which heat pumps qualify for tax credits and take action now.
⚠️ Important Changes: What the “One Big Beautiful Bill” Means for Heat Pump Tax Credits
Critical Update: The §25C and §25D credits terminate for property placed in service or cost paid after December 31, 2025. This means both air source and geothermal heat pump tax credits under these sections will no longer be available starting January 1, 2026.
Specific Heat Pump Tax Credit Changes
The “One Big Beautiful Bill” affects heat pump tax credits in the following ways:
- Section 25C (Energy Efficient Home Improvement Credit): The House bill would end the energy efficient home improvement credit (also known as the 25C credit), which covers air source heat pumps
- Section 25D (Residential Clean Energy Credit): Section 25D, the residential clean energy credit, included a 30% federal tax credit for geothermal heat pumps – this is also being eliminated
- December 31, 2025 Deadline: Section 25C (Energy Efficient Home Improvement Credit) and 25D (Residential Clean Energy Credit) would be repealed for systems placed in service after December 31, 2025
What This Means for Las Vegas Homeowners
For Las Vegas homeowners, this creates a narrow window of opportunity to capture significant savings on both air source and geothermal heat pump installations before these incentives disappear permanently.
Current Heat Pump Tax Credits Available Through December 31, 2025
Understanding which heat pumps qualify for tax credits under the current system helps you maximize savings before the deadline.
Air Source Heat Pumps (Section 25C)
The Energy Efficient Home Improvement Credit offers up to 30% of project costs for qualifying air source heat pumps, with a maximum credit of $2,000.
| Credit Details | Amount |
|---|---|
| Maximum Credit | $2,000 |
| Percentage Coverage | 30% of costs |
| Installation Costs | Included |
| Annual Program Cap | $3,200 total |
Geothermal Heat Pumps (Section 25D)
Section 25D, the residential clean energy credit, included a 30% federal tax credit for geothermal heat pumps with no maximum dollar limit, making it significantly more valuable for larger installations.
| Credit Details | Amount |
|---|---|
| Maximum Credit | No limit |
| Percentage Coverage | 30% of costs |
| Installation Costs | Included |
| Equipment Costs | Included |
Which Heat Pumps Qualify for Tax Credits: Air Source Requirements
To understand which heat pumps qualify for tax credits under Section 25C, you need to know the specific requirements. Starting January 1, 2025, air source heat pumps that are recognized as ENERGY STAR Most Efficient are eligible for this credit.
Essential Air Source Qualification Criteria
- ENERGY STAR Most Efficient certification – This is the primary requirement
- Primary residence installation – Must be your main home
- Existing home improvement – New construction doesn’t qualify
- Proper documentation – Certification numbers and receipts required
Performance Standards for Air Source Heat Pumps
| System Type | SEER2 Rating | HSPF2 Rating |
|---|---|---|
| Standard Air Source | 16+ | 8.5+ |
| Variable Speed Models | 18+ | 9.0+ |
| Cold Climate Units | 15+ | 10.0+ |
Which Heat Pumps Qualify for Tax Credits: Geothermal Systems
Geothermal heat pumps that qualify for tax credits under Section 25D have different requirements but offer higher potential savings due to the unlimited credit amount.
Geothermal System Requirements
- Must meet Energy Star requirements for geothermal heat pumps
- Ground-source or water-source heat pump systems
- Closed-loop or open-loop systems both qualify
- Professional installation required with proper documentation
Geothermal Efficiency Standards
| System Type | COP Rating | EER Rating |
|---|---|---|
| Closed Loop | 3.3+ | 16.2+ |
| Open Loop | 3.6+ | 21.1+ |
| Direct Exchange | 3.2+ | 15.0+ |
Documentation Requirements for Both Heat Pump Types
Knowing which heat pumps qualify for tax credits is only part of the equation – proper documentation is essential for both air source and geothermal systems.
Required Documentation for Air Source Heat Pumps
- ENERGY STAR Most Efficient certification
- Manufacturer’s certification statement
- Product identification numbers
- Installation receipts and invoices
- IRS Form 5695 (completed)
Required Documentation for Geothermal Heat Pumps
- Energy Star certification for geothermal systems
- System performance specifications
- Professional installation verification
- All equipment and installation receipts
- IRS Form 5695 (completed)
Which Heat Pumps Qualify for Tax Credits: Top Las Vegas Recommendations
Based on our experience installing heat pumps throughout Las Vegas, here are the systems that consistently qualify for tax credits:
Air Source Heat Pumps (Section 25C Eligible)
- Carrier Infinity Series – Variable speed, desert-optimized
- Trane XV Series – High SEER2 ratings
- Lennox Signature Collection – ENERGY STAR Most Efficient models
- Mitsubishi Hyper-Heat – Cold climate capability
- Daikin Fit Series – Compact, efficient design
Geothermal Heat Pumps (Section 25D Eligible)
- WaterFurnace 7 Series – Premium efficiency ratings
- Climatemaster Trilogy – Reliable performance
- Bosch Greentherm – European engineering
- Carrier GT-PX – Variable capacity technology
Alternative Funding After 2025
High-Efficiency Electric Home Rebate Program (HEEHRA)
While federal tax credits are ending, the High-Efficiency Electric Home Rebate Program may provide income-based rebates for qualifying households:
| Income Level | Air Source Rebate | Geothermal Rebate |
|---|---|---|
| Up to 80% AMI | Up to $8,000 | Up to $8,000 |
| 80-150% AMI | Up to $4,000 | Up to $4,000 |
| Above 150% AMI | Not eligible | Not eligible |
These rebates are expected to launch in Nevada by late 2025 or early 2026, providing some relief after federal tax credits end.
Critical Action Steps for Las Vegas Homeowners
The December 31, 2025 deadline is firm! Here’s your urgent action plan:
Immediate Steps Required
- Contact Doctor Heat Pump TODAY for priority consultation
- Determine which system type – air source or geothermal – fits your needs
- Verify current inventory of qualifying models
- Schedule installation immediately – contractors are booking quickly
- Secure all required documentation before year-end
Installation Timeline Considerations
- Permits: Allow 2-4 weeks for processing
- Equipment availability: Some models may have extended lead times
- Installation scheduling: Popular contractors booking 4-6 weeks out
- Final inspection: Must be completed before December 31, 2025
Conclusion
With the “One Big Beautiful Bill” eliminating both Section 25C and Section 25D tax credits after December 31, 2025, this is your final opportunity to save thousands on heat pump installations. Whether you’re considering an air source heat pump (up to $2,000 credit) or a geothermal system (30% with no limit), understanding which heat pumps qualify for tax credits and acting quickly is essential.
Don’t wait – these federal incentives are ending permanently. Contact Doctor Heat Pump at 702-467-7236 immediately to secure your consultation and begin the process of selecting and installing a qualifying heat pump system. Our experienced team will ensure you meet all requirements and deadlines to capture these valuable tax credits before they disappear forever.
