Last Chance: 2025 Heating Rebates and Tax Credits Are Ending Soon in Ann Arbor
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If you’ve been meaning to upgrade your heating or cooling system, now’s the time to take it seriously. The 2025 federal tax credits for home energy improvements expire at the end of this year, and Michigan’s utility rebates are already being claimed on a first-come, first-served basis.
These programs were designed to make energy-efficient upgrades more affordable—but once they’re gone, that’s it. Acting now could save you thousands. Our expert HVAC team at Trusted Heating & Cooling Solutions is here to help!
Call Now (810) 355-1669How the 2025 Rebates Work
For most homeowners, there are two main ways to save: a federal tax credit and Michigan’s state rebate program.
The federal Energy Efficient Home Improvement Credit covers up to 30 percent of qualifying project costs (up to $3,200 per year). That includes:
- Up to $2,000 for heat pumps or heat pump water heaters
- Up to $1,200 for upgrades like high-efficiency central AC or electrical panel replacements
Michigan’s Home Energy Rebate Program (MiHER) adds another layer of savings. Depending on your household income and project type, you could qualify for:
- Up to $8,000 for a high-efficiency heat pump
- About $1,750 for a heat pump water heater
- Up to $2,500 for electrical improvements such as panel upgrades
Local utilities like DTE and Consumers Energy also offer their own rebate programs for qualifying systems, but funding is limited and tends to run out quickly.
Which Upgrades Qualify
Not every system meets the efficiency requirements for these programs, but many of our core services do.
- Heat Pump Installation — High-efficiency, all-electric systems that heat and cool your home year-round.
- Air Conditioning Installation — Modern AC units with high SEER2 ratings that cut energy use.
- Ductless Mini Splits — Ideal for homes without ducts or rooms that are hard to heat and cool.
- Water Heater Replacement — Heat pump water heaters that deliver efficiency and qualify for major rebates.
- Electrical Panel Upgrades — Often required for new systems and eligible for their own tax credit.
- Furnace Installation — Some high-efficiency furnaces qualify for smaller, utility-based rebates.
If you’re not sure which option fits your home, Trusted HVAC can help you compare systems and calculate your estimated rebate total before you commit! Curious? You’re one call from finding out!
Why Timing Matters
To receive the federal tax credit, your installation must be complete before December 31, 2025. That means contracts, scheduling, and paperwork all need to happen this year.
Rebate funding is also shrinking fast as homeowners rush to upgrade before deadlines. Waiting could mean higher prices, fewer available appointments, or missing the programs altogether. Getting started now locks in your eligibility and saves you the stress of trying to squeeze in a project at the end of the year.
The Long-Term Payoff
The rebates are the incentive, but the real value comes afterward.
Upgrading to a modern heat pump or ductless system can make your home more comfortable and easier to live in. Temperatures stay steady, air feels cleaner, and noise levels drop. You’ll use less energy to maintain comfort, which means lower monthly bills year after year.
For many Ann Arbor homeowners, this isn’t just about saving money up front—it’s about building a more efficient, reliable home for the long haul.
How Trusted HVAC Can Help
Sorting through rebate forms and efficiency ratings can be overwhelming. We make it simple. Our team stays up to date on every federal, state, and utility program so you don’t miss a thing. We’ll guide you through equipment selection, verify eligibility, and handle the paperwork from start to finish.
All you have to do is decide which improvement makes the most sense for your home—and we’ll take it from there.
Get Started Before the Deadline
The 2025 heating and energy rebates in Ann Arbor are (actually) a limited-time opportunity! If you’ve been thinking about upgrading your system, don’t wait until winter to act!
Reach out today to review your options and reserve your place before rebate funds run out.
Schedule Your Appointment With Trusted HVAC!
Call Now (810) 355-1669