HVAC Tax Credit Is Ending Soon—Here’s What Oklahoma Homeowners Need to Know

Blanchard, OK — July 2025

The 25C tax credit, a key energy-saving incentive that offers up to $3,200 in federal savings on high-efficiency HVAC and water heater upgrades, is set to expire by December 31, 2025 under the newly signed Big Beautiful Bill Act.

In a recent video addressing Oklahoma homeowners, Tucker Yarbrough, CFO of Yarbrough & Sons Heating, Cooling & Plumbing, urged Oklahoma homeowners not to wait.

“Time is running out,†said Yarbrough. “If you’re a homeowner in Oklahoma, you need to listen up. The 25C tax credit is going away, which means you’re no longer going to be able to save big on your home’s HVAC or water heater upgrades.â€

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What Is the 25C Tax Credit?

The 25C federal tax credit provides incentives for energy-efficient home upgrades. Eligible homeowners can currently claim:

• 💰 Up to $3,200 for high-efficiency HVAC systems
• 💧 Up to $2,000 for energy-efficient water heaters
• 🪟 $600 for new windows
• 🧾 $150 for home energy audits

These credits have made it easier for many to upgrade from older, single-stage systems to inverter-driven, variable-speed systems—which offer better efficiency, improved comfort, and lower energy bills.

But, as Yarbrough explained in the video:

“The bill states that as of December 31, 2025, we will no longer be able to offer that to homeowners at all. So that is going away. And I don’t think this is something that’s coming back—at least not for several more years.â€

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Why This Matters Now

Inverter-driven systems typically cost 30–40% more upfront than traditional systems. The 25C tax credit has helped offset that cost for many Oklahoma homeowners.

“This system might not cost $10,000–12,000—it might cost $16,000–18,000,†said Yarbrough. “But then we’re immediately able to turn around and say, ‘Well, on your taxes when you file, you’re going to be able to claim the tax credit… and get $3,000 off.’ That’s a huge incentive.â€

With the credit ending soon, Yarbrough emphasized that the best time to act is now, before the rush of end-of-year installations and before rebates disappear entirely.

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Good News: 529 Plans Can Now Fund Trade School

While the loss of the tax credit is significant, the newly signed “Big Beautiful Bill†also brings a major win for students and future tradespeople: 529 college savings plans can now be used to pay for trade school tuition.

“The 529 plan can now be used to pay for trade school,†Yarbrough said. “It really gives a clear and open signal to the whole country that the trades are a viable post–high school education and career route.â€

Yarbrough & Sons has long supported training young professionals out of high school and sees this as a vital investment in Oklahoma’s skilled workforce.

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What Should Homeowners Do Now?

If you’re considering upgrading your system—or have a child interested in a trade school path—now is the time to act.

“I don’t want you to miss out because you’re on the fence about it,†said Yarbrough. “If you’re not sure, ‘Hey, I don’t know if I can afford it all right now,’ well good news—we have some great financing plans available that allow us to stretch out the payment of this at a super low rate.â€

📌 Helpful Resources:

• 🔧 Instant Estimate Tool
• 💸 HVAC Financing Options

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About Yarbrough & Sons Heating, Cooling & Plumbing
Yarbrough & Sons has been serving the Oklahoma City metro since 1988, specializing in HVAC maintenance, repairs, replacements, and plumbing solutions. With over 450 years of combined team experience, they are committed to quality workmanship and trusted service across Edmond, Blanchard, Norman, Moore, and beyond.

📠Locations:
122 S Main Ave, Blanchard, OK 73010
3601 S Broadway #300, Edmond, OK 73013
📞 (405) 485-3470
🌠yarbroughandsons.com