New Federal Tax Credits End Soon...
As of September 30, 2025, federal tax credits for energy efficiency home improvements will expire by 2026. These rebates provide up to $2,000 for installing qualifying central air systems or split AC units for your wall, along with additional incentives up to $1,200 for other energy-efficient upgrades, including Energy Star-compliant doors and windows.
Long Island homeowners planning to improve their homes are encouraged to cash in these funds by the end of the year. A notable point is that the new budget bill now ends these credits, which were originally set to expire in 2032.
Patrick O'Brien, T.F. O'Brien Heating & Coolingโs CEO, explains that the recent updates have led to a rush in installation requests. He adds, โSome people might think they had considered 2026, but now theyโre reaching out to us to take advantage of these credits.โ
One of the largest tax incentives is for purchasing solar panels, which will cost up to 30% of the total installation costs. This highlights the growing importance of renewable energy in energy-efficient home improvements.
