How to Finance Heating and Air Conditioning After OBBB Act
HVAC financing is perhaps the best way to save money on installing new equipment before the end of 2025. After the One Big Beautiful Bill is passed, federal tax credits for energy-efficient upgrades will end. But while they are still in effect, you have the chance to get up to 30% of the cost of the system back. In this article, we will tell you how to take advantage of all the benefits and what the best way to finance new HVAC is this year.
How the Big Beautiful Bill Impacts HVAC Rebates
In July 2025, Donald Trump signed the OBBB (One Big Beautiful Bill) law, which officially repealed the tax incentives that had been in place under the Inflation Reduction Act. This affected homeowners across the country. The program, which allowed homeowners to recoup up to 30% of the cost of such installations (like this one in Santa Clara; techs from the Fuse Service team conducted it), is becoming a thing of the past.
End of Energy Incentives: What It Means for You
Back in 2022, the home renovation tax credit gave many people the chance to upgrade their HVAC systems. Today, following the passage of the OBBB, all of that will soon be history. Right now, only one thing is absolutely certain: putting off replacement means losing HVAC financing.
Fortunately, 2025 isn't over yet. This means you can still take advantage of the old conditions. Right now, you can get:
- up to $2,000 for heat pumps;
- up to $600 for an electric panel (with an HVAC system);
- up to $1,200 for insulation, energy audits, etc.
Options for Financing a New HVAC System in 2025
If you don't want to pay everything at once, HVAC financing is what you need. Let's take a look at popular ways to finance new HVAC system right now.
Personal Loan for HVAC Installation: Pros & Cons
This type of loan is easy to obtain and does not require collateral, so it’s basically how to finance heating and air conditioning quite quickly. But let's be honest: there are some points to be cautious about:
- the interest rate is higher than for a mortgage;
- it may affect your credit history;
- a stable income is a must-have.
Things to Watch Out for with Personal Loans
Before signing the contract to finance new HVAC system, go through this checklist:
- Are there penalties for early repayment?
- How does the rate change after the grace period?
- Do you see any hidden fees?
Risks and Benefits of Home Equity HVAC Loans
If you are willing to use your home as collateral, you can get a low interest rate and a long term. So, this is new HVAC system financing with very good conditions. However, you are putting your property at risk. Before signing the contract, make sure you can repay the loan.
HELOC HVAC Financing: What You Need to Know
A HELOC (home equity line of credit) offers flexibility. How? You only pay for what you spend. It is well suited for projects with variable costs, such as HVAC. But be careful.
HELOC Pitfalls to Avoid When Financing HVAC
Don't blindly rely on a variable rate, because it may increase. And if you choose this type of new HVAC system financing, keep in mind that there may be fees for opening and maintaining the account.
HVAC Financing Through Your HVAC Contractor
Many contractors, such as Fuse Service, offer direct financing without a bank. This is convenient:
- often interest-free;
- quick approval;
- no paperwork.
This approach is the best way to finance new HVAC, especially if time is tight.
Fuse HVAC Financing Options in San Jose, CA
Fuse Service offers Bay Area residents HVAC financing at 0% interest until the end of 2025. We take care of all the paperwork and apply for tax credits and government programs instead of you.
We not only install but also advise on how to finance heating and air conditioning, taking into account all the specifics of your budget. We also share useful tips on our blog: for example, read about how long it takes to replace an AC unit or install a furnace.
Fuse’s 0% Interest HVAC Financing: Limited Time Offer
This is your opportunity to upgrade your climate control system without overpaying until the end of 2025. What are the most obvious pros of such a new HVAC system financing? Here they are:
- 0% interest rate for 12 months;
- No penalties for early repayment;
- Instant online approval.
Heat Pump Tax Credit 2025: Still Available?
Yes, but not for long. Of course, now you still are able to receive a tax credit of up to $2,000 for having a brand-new heat pump. But this program will end along with the others when OBBB comes into effect. This means that you can't wait any longer and need to find the best way to finance new HVAC right now.
Electric Panel and Insulation Rebates Explained
It’s extremely easy: if you combine HVAC installation with energy efficiency improvements, you get more. For example:
- Insulation + HVAC = up to $1,200 tax refund;
- Electrical panel upgrade = +$600;
And if you add an energy audit, the refund will be even cooler.
How to Maximize Your HVAC Tax Savings in 2025
If you want to finance a new HVAC system and get the most out of rebates and tax programs, here's what you need to do:
- Act quickly—the closer it gets to the end of the year, the higher the demand;
- Check for local subsidies (they may be a nice addition to the federal ones);
- Keep your receipts and acceptance certificates;
- Check in advance if your 2025 tax return will allow you to claim the refund.
This may seem complicated, but you always can ask us to do it all for you. We have been working in the home service sector for many years and are experts not only in the technical aspects of our business but also in helping you navigate the financial side of things. So, save our phone number (669) 666‑9219 or email us at support@fuseservice.com. And, of course, follow us on Instagram!