The federal 25C heat-pump tax credit has ended — here's what still saves you money

The 25C Energy Efficient Home Improvement Credit was a federal income-tax credit worth up to $2,000 for qualifying heat pumps — including ductless mini splits. Federal law enacted in July 2025 (Public Law 119-21) accelerated its sunset: the credit does not apply to any system placed in service after December 31, 2025. A mini split installed in 2026 or later earns no federal 25C credit. (Verified against IRS guidance, July 2026.)

The repeal is prospective only. If your qualifying heat pump was placed in service on or before December 31, 2025, you can still claim the credit on your 2025 federal return (IRS Form 5695). If we installed your system in 2025 and you need the manufacturer's efficiency certification or a copy of your invoice for filing, call us — we keep the documentation on hand.

• CPS Energy rebates — available now. San Antonio's utility pays $90–$310 per cooling ton for qualifying high-efficiency mini-split heat pumps (amount depends on the SEER2 tier and whether it's an early replacement or replace-on-burnout). The install must be performed by a Texas-licensed HVAC contractor and permitted inside city limits — both of which we handle. We verify your exact rebate before you sign anything.
• Texas HEAR rebates — not live yet. Texas's federally funded Home Electrification and Appliance Rebate program is still in its design phase with a targeted fall 2026 launch, pending federal approval. No dollar figures are official yet, and the state warns against contracts that promise them. We'll tell you the moment it opens.
• Efficiency itself. Inverter-driven ductless systems cut cooling energy versus window units and aging central systems — savings that show up on every summer bill regardless of incentive programs.

Rebates only matter if the equipment qualifies and the paperwork is right — which is exactly what a specialist handles. On your estimate we'll line up a qualifying system, verify your current CPS Energy rebate eligibility and amount, and flag every incentive you're eligible for so nothing is left on the table.