Heating, ventilation, and air conditioning (HVAC) equipment - Many of the programs for energy efficiency that have been in place the last few years are being rescinded this year-
 

Key 2026 Federal Energy Program Changes:
 

• Residential Tax Credits Expire (25C & 25D): The Energy Efficient Home Improvement Credit (25C)—which provided up to $3,200 for insulation, windows, and heat pumps—is not available for improvements installed in 2026. Similarly, the Residential Clean Energy Credit (25D) for solar and geothermal is no longer available, though some Clean Electricity Investment Tax Credits (48E/45Y) may apply with new restrictions.
   

• New Builder Credit (45L) Deadline: The 45L credit for energy-efficient homes is set to expire for units acquired (sold or rented) after June 30, 2026.
   

• Commercial Deduction (179D) Deadline: The deduction for energy-efficient commercial buildings expires for property where construction begins after June 30, 2026.
   

• Shift to Rebates: With tax credits gone, focus moves to 2026 state-managed, federal-funded rebate programs for high-efficiency upgrades.
   

• Clean Energy Rules: New federal building rules focus on reducing on-site fossil fuel combustion. 

Homeowners must ensure that any qualifying equipment or improvements are placed in service by December 31, 2025, to claim the credits. 

​

​

as more information is put out this page will be updated.
 

The U.S. Department of Energy (DOE) raised the minimum efficiency standards for air-source heat pumps and central air conditioners. Systems sold in the U.S. beginning Jan. 1, 2023, must meet those minimum standards.
 

The seasonal energy efficiency ratio (SEER) describes cooling system efficiency. The number represents the unit’s output during the cooling season divided by the amount of electricity the unit used over that same period.
 

As of 2022, the efficiency baseline was 14 SEER for heat pumps and air conditioners installed in homes. In 2023, there are new metrics and nomenclature – SEER2, EER2 and HSPF2. The new SEER2 ratings will be lower, and the minimum efficiencies will be reduced to account for the more difficult test procedures.

​

The federal government did not require you to replace your older heat pump or air conditioner when the minimum standards changed. However, if you decide to install new equipment in 2026, you will not be able to buy an old 14 SEER model*. Your new equipment must be rated 15 SEER or 14.3 SEER2 at minimum. Your new heat pump also must carry an HSPF rating of 8.8 or 7.5 HSPF2.

​

​

​

​

​

​

​

​

​

​

​

According to the U.S. Energy Information Administration (EIA), the new standards will result in huge savings on utility costs for consumers. The agency estimates that households with air conditioners or heat pumps collectively will save $2.5 billion to $12.2 billion over the next 30 years on energy bills.

​

​

How You Can Save Money

If your air conditioner or heat pump is older than 15 years, consider upgrading to a high-efficiency model. New equipment offers more energy-saving features, such as two-stage and variable speed compressors and blower motors.

​

Single-stage compressors, for example, work at capacity all the time. Two-stage and variable speed compressors operate at lower speeds and use less energy most of the time. They also can run at capacity when the temperature rises.

​

See the information on rebates and Tax incentives for 2025 and beyond

​

​

New Refrigerants in 2025

The other significant HVAC changes that happened in 2025 involves the kind of refrigerant manufacturers will use in all new air conditioners and heat pumps.
 

Since 2010, residential cooling systems have contained a refrigerant called R-410A (pre 2010 R-22), a hydrofluorocarbon (HFC). This refrigerant has high global warming potential and could harm the environment if it leaks from a cooling system. For that reason, the U.S. Environmental Protection Agency (EPA) is phasing down the manufacture and importation of HFCs by 85 percent over the next 15 years.

​

Beginning this year, new cooling systems will contain a refrigerant with a lower global warming potential. Manufacturers will build heat pumps and air conditioners compatible with R-454b. This refrigerant is more environment-friendly than its predecessors but also mildly flammable. We cannot retrofit existing equipment to use the new refrigerant.
 

Although R-410a will be available for equipment repairs over the next few decades, no new air conditioners or heat pumps will contain
R-410a beginning next year.

​

​