If you’ve been thinking about upgrading your HVAC, water heater, insulation, or electrical panel, 2025 is the year to act. Between local utility rebates and federal tax credits—some of which are now scheduled to end after December 31, 2025—you can stack serious savings on projects that lower bills and boost comfort. (IRS)
Serving Lago Vista, Leander, Liberty Hill, Marble Falls, Austin, and nearby communities, Lantz Home Services makes the process simple: we match the right equipment to your home, help line up eligible rebates, and supply the documentation you’ll need at tax time.
What you can claim right now
1) Federal tax credits for home efficiency (Section 25C)
The Energy Efficient Home Improvement Credit lets eligible homeowners claim 30% of qualified costs, with annual caps that typically cover:
- Up to $1,200 combined each year for items like insulation, exterior doors/windows/skylights (sub-limits apply), and home energy audits.
- An additional $2,000 per year for heat pumps and heat-pump water heaters (and certain biomass systems). (IRS, ENERGY STAR)
Heads-up: Under the One, Big, Beautiful Bill Act (OBBB), the IRS has issued guidance that several clean-energy incentives—including 25C—end for property placed in service after Dec 31, 2025 unless Congress changes the law. Plan your timeline accordingly. (IRS, CPA Practice Advisor, Farrell Fritz)
2) Federal tax credit for clean energy systems (Section 25D)
The Residential Clean Energy Credit still lists 30% for qualified solar, geothermal, battery storage, and more. But IRS FAQs released Aug 21, 2025 indicate accelerated termination after 2025 under OBBB. If you’re considering solar or geothermal, completing installation this year is the safest path to keep the credit. (IRS, Farrell Fritz)
Lantz tip: Credits and rebates can interact. Some utility rebates may reduce the project cost used to calculate your tax credit—talk with your tax pro. (We’ll provide all the documentation you need.)
Local rebates you can stack in our area
Austin Energy (City of Austin)
Central AC/Heat Pump Rebate: Averaging ~$500 when you install a qualifying high-efficiency system with a participating contractor. (savings.austinenergy.com)
- Whole-Home Savings: Programs for bundled improvements (insulation, duct sealing, HVAC, etc.) with average rebates around $2,600; low-interest financing available. Funding is limited and requirements can change, so apply early. (savings.austinenergy.com)
Oncor (many Central Texas addresses outside Austin city limits)
Residential incentives for high-efficiency A/C (SEER2 ≥ 14.3) and other upgrades—rough range $300 to $3,500, delivered via participating service providers. 2025 programs typically run February–November, with applications accepted until Dec 5, 2025 or until funds are exhausted. (Oncor)
Co-ops and other utilities
- Availability varies by provider (e.g., Pedernales Electric Cooperative and other local co-ops). We’ll check your address and point you to any active programs, plus the ENERGY STAR® Rebate Finder if a manufacturer/retailer offer is available. (PEC, ENERGY STAR)
Coming soon: Texas Home Energy Rebates (HOMES & HEAR)
Texas has been allocated $690 million to launch two new rebate programs for whole-home energy savings and electrification. As of late August 2025, the State Energy Conservation Office (SECO) says these programs have not launched yet, there are no approved contractors, and residents should avoid signing agreements claiming HOMES/HEAR participation until the state officially opens applications. We’re monitoring the rollout and will update customers as soon as it goes live. (Texas Comptroller)
What upgrades qualify most often?
High-efficiency heat pumps (ducted or mini-split)
Heat-pump water heaters
High-efficiency central A/C
Insulation & air sealing
Energy-efficient windows/doors (limits apply)
Electrical panel/wiring upgrades when needed for new electric equipment (often creditable up to $600 under 25C). (IRS)
Timeline: why 2025 is a “use-it-or-lose-it” year
Recent IRS guidance tied to OBBB means several home energy credits—including 25C and 25D—end after Dec 31, 2025 unless the law changes. If you want those federal savings, plan your project so equipment is installed and placed in service in 2025. Utility rebates (like Austin Energy/Oncor) are first-come, first-served and can change mid-year based on funding. (IRS, Oncor, savings.austinenergy.com)
How Lantz Home Services helps you maximize savings
Free eligibility check: We confirm which local rebates and federal credits your project may qualify for, based on your address and equipment.
Right-sized solutions: We design and install systems that hit the efficiency requirements rebates look for (without overspending).
Paperwork support: You’ll get AHRI certificates, itemized invoices, product/model details, and guidance for IRS Form 5695 to share with your tax professional.
Code-compliant, done right: Licensed techs, permits pulled, and inspections passed—exactly what rebate programs require. (savings.austinenergy.com)
Ready to start?
Whether you’re in Lago Vista, Leander, Liberty Hill, Marble Falls, or Austin, reach out to Lantz Home Services. We’ll price options, line up applicable rebates, and help you meet 2025 tax-credit deadlines—so you keep more cash while your home gets more comfortable.
Disclaimer: We’re not tax advisors; always consult your tax professional. Program rules and funding can change—eligibility, amounts, and timelines are ultimately determined by the administering agencies/utilities. (Sources linked throughout.)