2025 Energy-Efficiency Rebates & Tax Credits

If you’re thinking of upgrading your home with energy-efficient appliances, 2025 is a great year to get started. There are several sources of savings from both Ohio state and the federal government that can make your upgrades significantly more affordable, allowing you to cut initial costs and benefit from greater energy efficiency over time in the form of lower energy bills. Here’s what you need to know about how to qualify for HVAC rebates in 2025.

How Do Rebates Work?

The following rebates are programs facilitated by the state of Ohio. The state was awarded $249 million under the Inflation Reduction Act (IRA) to create a grant program that will help Ohioans access appliances and home systems that improve energy efficiency. The Department of Development is in charge of designing the program and plans to submit it for Department of Energy approval by January 31st, 2025, at the latest. You can check the program’s status here.

High-Efficiency Electric Home Rebate Act (HEEHRA)

This program is designed for low-income households and will cover 100% of the cost of home electrification up to $14,000. It will also cover 50% of the cost for moderate-income households. The $14,000 cap is broken down as follows:

Electric clothes dryers, stoves, and insulation or air sealing measures are also eligible for rebates.

Home Efficiency Rebates (HOMES)

This program provides rebates for energy-efficient retrofits that are variable based on household income and type of retrofit. The rebate amounts will range from $2,000 to $4,000 per home. The program provides:

  • Up to $2,000 for retrofits that reduce energy use by at least 20%
  • Up to $4,000 for retrofits that reduce energy use by at least 35%

You can find more information on how home energy rebates work on the Department of Energy website.

How Do Residential Energy Tax Credits Work?

There are two federal energy-efficient home tax credits, and you can claim either of them on your taxes for home improvements made in 2025. It’s important to note that these credits are nonrefundable, so you can’t get more back on the credit than you owe in taxes. You can find out how to claim tax credits and instructions for filling out Form 5695 on the IRS website.

Residential Clean Energy Credit

This energy credit helps recoup the cost of new, qualified, clean energy equipment Eligibility for tax credits includes:

  • Solar panels
  • Solar water heaters
  • Wind turbines
  • Geothermal heat pumps
  • Fuel cells
  • Battery storage technology

How Much You Can Save

The Residential Clean Energy Credit covers 30% of expenses for qualified clean energy property.

Energy Efficient Home Improvement Tax Credit

This tax credit covers part of certain qualified expenses. There are limits on annual allowable credit and limits on certain types of expenses, but there is no lifetime limit. Equipment must be produced by a qualified manufacturer, and you can check to see which products are qualified on the Department of Energy website.

How Much You Can Save

You can claim 30% of qualified expenses on your taxes, up to a total of $3,200 per year. The annual limit breakdown includes:

  • $1,200 for property costs and home improvements:
    • $250 per exterior door, up to $500 total.
    • $600 for exterior windows and skylights.
    • $150 for home energy audits.
  • $2,000 per year for:
    • Heat pumps
    • Water heaters
    • Biomass stoves
    • Biomass boilers
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Why Choose Shanklin?

When selecting energy-efficient upgrades for your home appliances, the company you work with matters. At Shanklin Heating & Air Conditioning, we take pride in helping you find exactly the right HVAC fit for your home that will help maximize your tax refund options. We are family-owned and -operated, so you can expect only the best customer experience from each team member and technician — plus coupons and specials to make our services even more affordable.

Schedule a consultation with Shanklin today to learn more about qualified products eligible for energy rebates and tax credits in Ohio.

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Family-Owned & Operated for 3 Generations
Family Owned & Operated for 3 Generations

We’re committed to providing a top-quality service with a personalized touch.

24-Hour Emergency Service
24 Hour Emergency Service

We offer 24-hour emergency service to ensure your comfort and peace of mind whenever you need it.

Certified Technicians
Certified Technicians

Our team of certified technicians guarantees expert and dependable HVAC solutions for your home or business.

A+ Customer Service
A+ Customer Service

We pride ourselves on delivering A+ customer service, always putting your satisfaction first.

Top-of-the-line Products
Top-of-the-line Products

We only offer top-of-the-line products to ensure the highest quality and efficiency for your heating and cooling needs.

Friendly Service
Friendly Service

Experience the warmth of our friendly service as we go the extra mile to make your HVAC experience a pleasant one.