Energy costs are on the rise in 2025, which makes efficient HVAC systems a smart priority for homeowners. Upgrading to high-performance heating and cooling enhances comfort and helps reduce monthly utility bills. In addition, they can save up to $10,400 through EmPower Maryland incentives, federal tax credits, and manufacturer discounts.
In this blog, we will discuss the 2025 HVAC rebates and tax credits available to Maryland homeowners. We will also provide expert tips on HVAC care and cost-saving strategies.
Why 2025 Is the Year To Upgrade Your HVAC in Maryland
Here are the top reasons that make 2025 the ideal time for Maryland homeowners to upgrade their HVAC systems:
1. Stricter Efficiency Standards
In 2025, new efficiency regulations are setting a higher bar for HVAC systems across Maryland. Older units may no longer meet compliance, so homeowners need to consider upgrading before they are left with limited options. Moreover, upgrading now ensures your system meets the latest performance standards while maximizing long-term savings.
2. Expanded State and Federal Incentives
Maryland residents have access to some of the most generous HVAC electrification incentives in 2025. Through the EmPower Maryland program, you can receive instant rebates of up to $8,000 for switching from gas or oil to an all-electric system. This also includes necessary panel upgrades.
In addition, the federal Energy Efficient Home Improvement Credit — Section 25C — offers tax credits of up to $2,000. Certain qualifying systems may also include manufacturer rebates up to $1,400. That’s a potential savings of up to $10,400 for those who make the switch now.
3. Peak in Repair Risk for Aging Systems
If your system is over 10 years old, chances are it’s headed for more frequent repairs. Older units tend to fail, especially during hot summers or freezing winters. As such, upgrading now means fewer breakdowns and more peace of mind.
4. Smarter, Greener HVAC Options
Today’s HVAC technology is smarter and more eco-friendly. From smart thermostats to variable-speed systems, modern upgrades offer better comfort, control, and energy efficiency. Electrifying your HVAC system also supports a greener lifestyle by eliminating your home’s reliance on gas or oil heating.
5. Last Chance To Beat Rising Costs
Material and installation costs steadily increase, and energy prices aren’t slowing down either. Taking advantage of rebates and tax credits in 2025 means locking in savings before costs rise and incentive funds run out. These programs are time-sensitive — once funding is gone or deadlines pass, the opportunity could be lost.
Rebates & Tax Credits You Can Claim
These are the rebates and tax credits that homeowners can claim to make energy-efficient upgrades more affordable and reduce energy costs:
Energy Efficient Home Improvement Credit (Section 25C)
Claim 30% of the cost for energy-efficient HVAC upgrades, including heat pumps and furnaces. For 2025, this includes up to $2,000 for qualifying heat pumps and $600 for advanced furnaces or air conditioners. To qualify, systems must meet or exceed the highest efficiency standards.
Residential Clean Energy Credit (Section 25D)
This credit offers homeowners a 30% tax credit for installing clean energy systems like solar panels and geothermal heat pumps. There’s no cap on the amount you can claim, and the credit applies to equipment and installation costs. It’s a great option if you plan a larger home energy upgrade and want to lower your long-term energy use.
High-Efficiency Electric Home Rebate Act (HEEHRA)
HEEHRA provides upfront rebates — rather than tax credits — making it helpful for low and moderate-income households. You can receive up to $8,000 for a high-efficiency heat pump and additional rebates for water heaters, stoves, panel upgrades, and electrical work. Such rebates are applied directly at the point of sale and may be combined with EmPower Maryland incentives.
Smart Tips To Maximize Your Savings
Here are 5 essential tips to maximize your savings with 2025 HVAC rebates and tax credits:
- Act early. Start your HVAC upgrade immediately to secure available rebates before funds or deadlines expire.
- Choose Energy Star-certified equipment. Qualified systems meet strict efficiency standards that help you save on energy bills and qualify for incentives.
- Keep all receipts and documentation. Detailed records help verify eligibility and prevent delays during the rebate or tax credit approval.
- Consult a professional HVAC expert. Work with a licensed HVAC contractor to choose qualifying equipment and complete all required forms correctly.
- Combine incentives when possible. Maximize your savings by using EmPower Maryland rebates along with federal tax credits and manufacturer discounts.
Maximize Your Rebates and Tax Credits With Clarksville Heating & Air
Clarksville Heating & Air is here to help you take full advantage of 2025 HVAC rebates, tax credits, and energy-saving incentives before they expire. Our team handles everything — from finding the right system to managing the paperwork — so the process is simple, efficient, and stress-free. By upgrading now, you improve comfort, reduce energy costs, and take advantage of valuable savings.
Check your eligibility and claim your rebate here or contact us today to explore your options!
