HVAC Tax Credits in NJ 2026: What You Can Actually Claim

If you're researching HVAC tax credits for 2026, here's the short version: the federal 25C Energy Efficient Home Improvement Credit — which used to provide up to $2,000 for qualifying heat pump installations — expired December 31, 2025. There is no federal HVAC tax credit for equipment installed starting January 1, 2026. What NJ homeowners still have is the PSE&G / NJ Clean Heat rebate.

The 25C credit covered 30% of qualified heat pump costs, up to $2,000 per year, claimed on your federal tax return. It was not extended past December 31, 2025. If your qualifying equipment was installed and paid for on or before that date, ask your tax preparer whether it can still be claimed on that year's return — the expiration affects new installs, not ones already completed.

What's Still Available

The PSE&G / NJ Clean Heat rebate is a state and utility program, separate from the IRS, and it's unaffected by the federal credit's expiration. Mechanical Enterprise handles the rebate application for every client. Call (862) 423-9396 for a free assessment.