Federal Tax Credits for HVAC and Water Heater Installations

Homeowners in Dayton, Columbus, and Cincinnati can take advantage of valuable federal tax credits on both HVAC and plumbing upgrades through Section 25C of the Inflation Reduction Act. Whether you’re installing a new heat pump system or replacing a water heater, Logan Services is here to help you identify eligible systems and make sure everything is installed in time to take advantage of the program.

We handle the details—you claim the credit.

Act fast to take advantage of these valuable federal tax credits. Call (800) 564-2611 to schedule your free same-day in-home estimate with Logan Services and get next-day installation before the December 31, 2025, deadline.

What Is a Tax Credit?

A tax credit directly reduces the amount of federal income tax you owe. Unlike a deduction that lowers taxable income, a credit provides a dollar-for-dollar reduction on your tax bill. For example, a $2,000 tax credit reduces your tax liability by $2,000.

What Paperwork Do I Need for My Tax Credits?

To claim your Section 25C tax credit, you’ll need to file IRS Form 5695 with your federal tax return. Logan Services provides the following documents after installation is complete:

AHRI Certificate unique to your installed system
Manufacturer Certification Statement
Detailed Invoice showing system type and installation date

How Does Logan Services Help Me Claim My Tax Credits?

Logan Services simplifies the process by:

Educating you on which HVAC and water heating systems qualify under Section 25C
Helping you maximize your potential tax credits through system selection
Providing the required documents and product details needed to support your tax credit claim with the IRS

While we don’t file paperwork on your behalf, we make sure you have everything required to complete your claim accurately. If you misplace your documentation, just contact us—we keep a copy on file and can resend it at your request.

Act Now: Section 25C Tax Credit Ending Soon

What Is Section 25C?

Section 25C of the Inflation Reduction Act, also known as the Energy Efficient Home Improvement Credit, offers tax credits for qualified HVAC and water heating equipment. This includes high-efficiency heat pumps, air conditioners, furnaces, and heat pump or gas water heaters.

When Does Section 25C Expire?

As of July 4, the H.R.1 bill has been signed into law, officially setting an expiration date for this program. All qualifying equipment must be installed by December 31, 2025, to claim the incentive. No extensions are currently scheduled.

HVAC Systems Eligible for Federal Tax Credits

Logan Services installs a wide range of Trane and Daikin equipment that qualifies under Section 25C. Customers may be eligible for the following tax credits when installing qualifying HVAC systems:

Up to $2,000 for high-efficiency heat pumps
Up to $600 for ENERGY STAR®-certified central air conditioners
Up to $600 for qualifying gas furnaces or boilers

Aeroseal Duct Sealing Is Also Eligible for Tax Credits

Leaky ductwork wastes conditioned air and reduces HVAC efficiency. Sealing your ducts can improve comfort, lower utility costs, and qualify for additional tax savings. Homeowners who choose Aeroseal duct sealing as part of an HVAC upgrade may be eligible for:

Up to $1,200 in tax credits for home envelope improvements, including air sealing

To qualify, all work must meet energy efficiency standards outlined by the IRS and be completed by December 31, 2025.

Water Heaters Eligible for Federal Tax Credits

Section 25C also covers energy-efficient water heating system installations. The following plumbing upgrades are eligible for tax credits if installed by December 31, 2025:

Up to $2,000 for qualifying heat pump water heaters
Up to $600 for ENERGY STAR®-certified gas storage or tankless water heaters

What Plumbing Upgrades Do Not Qualify?

Standard plumbing installations, such as pipe repairs, fixture replacements, or drain services, are not eligible. Only water heaters that meet federal energy efficiency standards qualify for Section 25C credits.

Federal Tax Credit Eligibility by System Type

System Type	Equipment Examples	Max Tax Credit	ENERGY STAR® Required	Notes
Heat Pump (HVAC)	Trane and Daikin	$2,000	Yes	Must meet CEE Tier 1; AHRI certification required
Central Air Conditioner	ENERGY STAR®-certified units	$600	Yes	Confirm AHRI match with furnace/coil
Gas Furnace or Boiler	High-efficiency models	$600	Yes	Must meet required efficiency standards
Duct Sealing (Aeroseal)	Whole-home air duct sealing	Up to $1,200	N/A	Included under building envelope improvements
Heat Pump Water Heater	Hybrid-style water heaters	$2,000	Yes	Electric only; high-efficiency models
Tankless Gas Water Heater	ENERGY STAR®-certified tankless units	$600	Yes	Includes installation cost
Standard Gas/Electric Heater	ENERGY STAR®-certified storage units	$600	Yes	Must be properly sized and certified

Double Your Savings With Logan Services – Up to $6,400 in Value

Logan Services is offering a limited-time promotion to double your savings on qualifying HVAC systems. Customers can combine:

Up to $3,200 in Logan Services instant savings
Up to $3,200 in federal tax credits under Section 25C

That’s a total potential value of up to $6,400 when you upgrade your system with Logan Services. Our team will apply all available instant discounts and ensure your equipment meets the latest energy efficiency standards to maximize your tax credit eligibility.

Schedule Your Installation Before the Deadline

To receive Section 25C tax credits, your new HVAC or water heating system must be installed by December 31, 2025. As schedules fill and supply chain timelines tighten, booking early ensures you don’t miss the opportunity.

Free, Same-Day Estimates and Next-Day Installation

Logan Services proudly installs qualifying HVAC and water heating systems in Dayton, Columbus, and Cincinnati, OH. Contact us today to:

Select HVAC systems eligible for Section 25C tax credits
Choose a qualifying heat pump or gas water heater
Maximize savings with instant rebates and federal incentives
Ensure timely installation and compliance before the 2025 deadline

Frequently Asked Questions About Tax Credits

What Is the Deadline for Claiming Section 25C Tax Credits?

All qualifying HVAC and water heating systems must be installed by December 31, 2025, to claim Section 25C tax credits.

Can I Combine Logan Services’ Promotion With Federal Tax Credits?

Yes. Our Double Your Savings offer can be combined with federal tax credits for a total potential value of up to $6,400.

Which HVAC Brands Qualify for Tax Credits?

Logan Services installs premium Trane and Daikin systems that meet Section 25C requirements.

Is Aeroseal Duct Sealing Eligible for Tax Credits?

Yes. Aeroseal duct sealing may qualify for up to $1,200 in tax credits under Section 25C as part of home envelope improvements when installed by December 31, 2025.

How Does Duct Sealing Improve HVAC Efficiency?

Sealing ductwork with Aeroseal reduces air leaks, allowing your HVAC system to operate more efficiently. This can improve home comfort, lower energy bills, and support eligibility for federal tax incentives.

Do All Water Heaters Qualify for Tax Credits?

Only ENERGY STAR®-certified gas or electric units and heat pump water heaters qualify under Section 25C.

Does Logan Services Help With Tax Credit Paperwork?

We do not file tax forms, but we help customers understand which systems qualify, assist in maximizing their credits, and provide the necessary documentation—including the AHRI certificate, Manufacturer Certification Statement, and installation invoice—once your system is installed.

What Can I Do If I Misplace My Tax Credit Paperwork?

We provide your AHRI certificate, Manufacturer Certification Statement, and installation invoice once your installation is complete. If you lose these documents, just call Logan Services. We keep them on file and can send you a replacement copy upon request.

Where Can I Access IRS Form 5695?

You can download IRS Form 5695 and its instructions directly from the official IRS website at irs.gov. This is the form used to claim federal energy tax credits for qualified home improvements, including HVAC and plumbing upgrades.

Check out our recent awards & certifications

Learn more about our most recent awards and accolades to see why Ohio residents have come to trust Logan Services A/C, Heat & Plumbing as their heating and air conditioning company of choice.

Schedule a Free In-Home Estimate with Logan Services Today!

Our team is happy to help! Submit an online inquiry using the form in the button below or give us a call at (800) 564-2611.

Our Service Area

We Proudly Serve the Greater Dayton, Cincinnati, and Columbus Areas

Click on the city links to learn more about the local team and find your community on our extensive list of service areas. Have a question? Call any of our locations directly or submit an online inquiry using any of the contact forms on our website. Our team is happy to help!