The “Big Beautiful Bill” Threatens to End Federal HVAC Incentives — Act Now to Secure Your Savings

As of June 2025, Nantucket homeowners planning premium HVAC or geothermal upgrades are facing a narrowing window of opportunity. The current proposed federal budget, informally called the “Big Beautiful Bill”, is expected to eliminate some of the most valuable federal energy incentives currently available to property owners:

• The Section 25D Residential Clean Energy Credit (30% federal tax credit for geothermal systems)

• The Section 25C Energy Efficient Home Improvement Credit (up to $2,000 for qualifying heat pump systems)

These are not minor subsidies. They are substantial, active incentives designed to reward early adopters of high-efficiency systems. While these credits are technically set to expire on December 31, 2025, Nantucket’s reality tells a different story. With extended permitting lead times, seasonal construction schedules, and limited on-island labor, the true deadline is weeks, not months, away.

What You Can Still Capture — But Only If You Act Now

• Section 25D Residential Clean Energy Credit

-30% of total system cost for geothermal systems, uncapped

• Section 25C Energy Efficient Home Improvement Credit

-Up to $2,000 per year for qualifying heat pumps, including:

  • Ductless mini-split systems

  • Central ducted systems

  • Full new installations

  • AC-to-heat pump conversions

These are “placed-in-service” credits, which means the system must be fully installed and operational by the deadline. Every day of delay puts your eligibility at risk.

The Real Cost of Waiting: Hundreds of Thousands in Lost Value

A single geothermal project valued at $500,000 unlocks a $150,000 tax credit under Section 25D. When paired with high-efficiency heat pump installations across a primary residence, guest house, and pool house, the total lost credit can easily surpass $200,000.

These are not speculative savings. They are federally legislated, deadline-driven incentives. Once this bill passes, no extensions or grace periods are expected.

A Broader Shift: ENERGY STAR Program Is Ending Too

Adding to the urgency is the planned phaseout of the ENERGY STAR HVAC certification program, which has served as a trusted benchmark for high-performance, rebate-eligible equipment. With ENERGY STAR ending, homeowners will lose a powerful tool for qualifying equipment, simplifying system comparisons, and accessing future rebate programs. Combined with the rollback of federal tax incentives, this marks a major turning point in residential energy policy.

Equipment Costs Are Rising. Availability Is Shrinking.

Complicating matters further is the HVAC industry’s ongoing refrigerant transition. R-410A, the longtime industry standard, is being phased out in favor of R-454B. This new refrigerant is EPA-compliant but requires specialized tools, training, and parts. The shift is increasing equipment prices and tightening inventories across the country.

At North Winds Mechanical, we anticipated this change and secured a limited stock of high-performance R-410A systems and refrigerant specifically for Nantucket clients. But our inventory is moving quickly and replacements are not one-to-one.

For Luxury Homes, Timing Is a Strategic Asset

In high-end homes, HVAC is more than a mechanical system. It is an integral part of comfort, efficiency, and property value. Whether you’re upgrading a legacy estate or wrapping up a custom new build, acting now could protect your investment and future savings.

Fall installations are already booking. Delaying your decision any further increases the chance your project will miss the savings window.

What to Do Now

• Book your site visit and consultation

• Finalize system design and receive your quote

• Secure your installation window while there’s still availability

• Confirm your eligibility before the programs disappear

At North Winds Mechanical, we specialize in premium HVAC and geothermal systems designed for Nantucket’s most exceptional properties. From concept to commissioning, our team delivers every detail with precision and care.

The new federal budget could eliminate hundreds of thousands of dollars in available energy credits. The only way to protect them is to act now.

📞 Contact North Winds Mechanical today to secure your system, your savings, and your schedule.