If you’re planning to make energy efficient upgrades to your home, 2025 is the year to do it and the team at Princeton Air can help! There are numerous incentives available to homeowners throughout Mercer, Middlesex, and Somerset counties in New Jersey and Bucks County, PA that can make essential home improvements, like insulation and heat pump installation, more affordable.
We stay up-to-date with the rebates and tax credits that are available in the areas we serve so that we can help you maximize your savings on reliable and long-lasting solutions to make your home more comfortable, healthy, and energy efficient. Here is what you need to know about energy efficiency tax credits in 2025 and the other rebates available for homeowners this year:
The Energy Efficient Home Improvement Credit & The Clean Energy Tax Credit in 2025
The 25C tax credit (officially called the Energy Efficient Home Improvement Credit) allows homeowners to reduce their federal tax liability by 30% of the cost of qualifying energy-efficient home upgrades. With an annual cap of $3,200, several of our services qualify for this credit, including:
- Ducted heat pumps and ductless mini splits: $2,000 annual limit
- High-efficiency furnaces, boilers, and central air conditioners: $600 annual limit
- High-efficiency water heaters (gas, propane, or oil): $600 annual limit
- Insulation and air sealing: $1,200 annual limit
- Home energy audits : $150 annual limit
Geothermal Heating and Cooling Systems (25D)
Geothermal systems are covered under the separate Residential Clean Energy Credit (25D). This credit offers 30% of the total system cost with no annual cap, and any unused portion can roll over to the following tax year. This carryover feature makes the 25D credit unique compared to the nonrefundable 25C credit.
Contact us to learn how these tax credits can help you save on energy-efficient home upgrades!
Local Utility Rebates
Princeton Air is a participating contractor in rebate programs with utility providers in New Jersey and Bucks County. This allows us to help you qualify for thousands in savings on HVAC equipment, energy efficient appliances, and more. Our team can help you find out which incentives you qualify for during an initial consultation and help guarantee your rebates with the following companies:
Spread Out the Remainder After Rebates with On-Bill Financing
On-bill financing lets you pay for energy efficiency upgrades through your utility bill with zero-interest terms of 84 to 120 months. It’s a simple, hassle-free way to invest in high-efficiency solutions without managing extra accounts.
Maximize Your Savings with Princeton Air
For more than 50 years, we’ve been helping homeowners find ways to make their homes healthier, more comfortable, and energy efficient. Our team is committed to not only providing reliable solutions backed by building science, but to help make improving your home more affordable. Whether you’re in need of heating and cooling upgrades or want to improve your home’s performance with effective insulation, Princeton Air is your one-stop-shop for energy efficiency!
