Federal Energy Tax Credits Are Ending in 2025—What This Means for Home Service Businesses

What Are Sections 25C and 25D?

Section 25C – Energy Efficient Home Improvement Credit

• Offers a 30% tax credit (up to $1,200/year) for qualified upgrades like:
• Insulation
• Air sealing
• Windows, doors, and HVAC
• Requires qualified product identification numbers (PINs) starting in 2025.
• Ends completely after December 31, 2025.
  

Section 25D – Residential Clean Energy Credit

• Offers a 30% tax credit with no cap for:
• Solar electric systems
• Battery storage
• Geothermal heat pumps
• Ends after 2025, cutting short a credit that was initially slated to phase out gradually through 2034.

These incentives were originally introduced to help homeowners make energy-efficient improvements while reducing the cost burden—but now, they're on a confirmed timeline to sunset.

Why This Matters for Contractors and Energy Professionals

If you're in the business of improving energy performance—whether through insulation, solar, or HVAC upgrades—this tax credit news directly affects your sales, marketing, and strategy.

Your customers will no longer be able to claim these credits after 2025, which makes the rest of this year critical for closing deals.

This is your window to:

• Re-engage long-time leads
• Educate new prospects
• Leverage urgency to increase conversion rates

3 Strategies to Act On Now

1. Email Marketing to Reignite Old Leads

Many customers who requested quotes over the past few years may still be on the fence due to cost. Now is the time to reach out to them with a compelling “last chance” message. Remind them that:

• The credit can save them thousands.
• Projects must be installed before December 31, 2025.
• There is still time—but not much.

A well-timed email campaign could bring dormant leads back to life.

2. Programmatic Advertising for Education + Lead Capture

Don’t assume every homeowner knows about these tax credits or that they’re going away. This is where programmatic advertising shines. Display ads, streaming TV spots, and in-market audience targeting can:

• Inform homeowners of the credit’s final year.
• Position your brand as a trusted, urgent solution.
• Capture new leads while others remain silent.

Running a 6-month awareness and lead-gen campaign can yield a major ROI—especially during this narrow window of opportunity.

3. Train Your Sales Team to Use the Deadline

Your team should be confident in explaining the tax credit, who qualifies, how much they can save, and—most importantly—when it ends. A sense of urgency, combined with a no-pressure, consultative sales approach, can help tip the scale for hesitant homeowners.

Need help creating a sales cheat sheet or scripting messaging? We’ve got you covered.

Don’t Let This Opportunity Slip Away

At Media Genie, we’re already helping insulation and energy contractors across the U.S. build end-of-year campaigns centered around this confirmed sunset.

The message is simple: Act before December 31, 2025, or miss out on thousands in federal incentives. Now is the time to amplify that message across your marketing and sales channels.

Want help building your campaign strategy? Reach out today—we’ll help you create urgency, convert leads, and grow your revenue before this rare window closes.