The Big Beautiful Bill Act was signed by President Trump on July 4, 2025. The large budget reconciliation law affects various industries including HVAC. We want to highlight some of the major updates that can affect homeowners in Pennsylvania. As a provider of HVAC services for Snyder County and surrounding areas, we want to make sure our customers are aware of these changes.
What’s Changing?
Tax Credit Deadlines
- Section 25C (Energy-Efficient Home Improvement Credit)—covers up to 30% of costs for HVAC improvements like heat pumps, insulation, windows and more. Now sunsets December 31, 2025.
- Section 25D (Residential Clean Energy Credit)—offers a 30% tax credit for solar, geothermal and similar installations; also ending December 31, 2025.
- Section 45L (New Energy Efficient Home Credit) and Section 179D (Commercial Building Efficiency Deduction)—scheduled to expire after June 30, 2026.
Growing Skilled Trades Appeal & Workforce Development:
- The bill allows 529 education savings plans to fund HVAC training and certification—boosting workforce growth. It has broadened the scope of 529 plans, empowering families to invest in a wider range of educational and career development opportunities, particularly within the skilled trades and vocational training sector.
- This is a HUGE win to address the shortage of skilled trades professionals.
Why Act Now?
Bottom line for homeowners: Any HVAC or energy-efficiency upgrade must be fully installed and operational by December 31, 2025, to qualify for these federal tax benefits.
Pennsylvania Specific Incentives for Savings
1. Rebates through Utility Provider
Pennsylvania’s flagship energy-efficiency initiative, Act 129, mandates electric utilities to promote reduced consumption and peak demand. This has led to rebates and assistance programs via your local utility provider.
Check with your local utility provider for details.
2. State Loan Assistance — HEELP & KEEP
The Homeowners Energy Efficiency Loan Program (HEELP), run by the Pennsylvania Housing Finance Agency, offers low-interest loans:
- Between $1,000 to $10,000 (some sources note up to $20,000) at just 1% fixed interest over 10 years, with no prepayment penalties
The KEEP Loan is supported by the Pennsylvania Energy Development Authority (PEDA)’s Pennsylvania Energy Accelerator Program.
Effective July 1, 2025 — For a limited time only, Pennsylvania homeowners can finance qualifying home energy upgrades through the KEEP Home Energy Loan using new, reduced interest rates structured as below.
For financing applications received through September 30, 2025, or until allocated program funds are exhausted, available interest rate and terms for the KEEP Home Energy Loan include:
- 4.99% for 36 months
- 6.99% for 60 months
- 7.99% for 120 months
To learn more about federal tax credits for HVAC upgrades, contact W&W Residential Services. We specialize in HVAC installation, repair and routine services for various types of systems, including geothermal. We serve Snyder, Northumberland and Union counties in central Pennsylvania.
