How to Market the Expiring 25C HVAC Tax Credit to Millennial Homeowners

By Dr. Anissa Villegas, Marketing With a Flair

Millennials now make up 28% of all homebuyers and represent over 70% of first-time buyers. Yet most contractors still aren’t speaking their language. Contractors can now leverage the Big Beautiful Bill’s impact on the 25C Tax Credit to support install conversions by tapping into the Millennial consumer behaviors in your marketing plans. The 25C tax credits are disappearing and it might just be the biggest opportunity for shoulder season planning. 

Why the 25C Tax Credit Is Your Fall Goldmine

…and Why It’s Vanishing for Good

Here’s what most homeowners don't realize: THE 25C ENERGY EFFICIENT HOME IMPROVEMENT CREDIT IS ON ITS WAY OUT FOR GOOD. The changes under the Big Beautiful Bill will impact the 25C tax credit that was originally planned to conclude in a decade; now, the window for homeowners to claim up to $2,000 in tax credits for qualified HVAC system upgrades is closing permanently. To be eligible, systems must now be installed and placed in service by December 31, 2025. After that? No carryover. No phase-out. No grace period. Contractors feel the urgency to educate and motivate homeowners to act fast or miss out forever. However, there is some hope of tax credits, according to the ACHR News“On the residential side of the HVAC market, Section 25C and 25D tax incentives will be repealed for projects starting after Dec. 31, 2025.”

HVAC businesses should still treat this as a true countdown-to-zero moment for tax savings. It also brings forward a perfect opportunity to engage Millennial homeowners, who respond powerfully to:

• Deadline-driven offers: “GET IT BEFORE THESE SAVINGS ARE GONE FOREVER DEC 31, 2025.” 

• Eco-forward incentives: “SAVE GREEN WHILE GOING GREEN”

• And the feeling of getting ahead of the curve. HIGHLIGHT THE SMART HOME FEATURES, THERMOSTATS AND EFFICIENCIES .

  
  

HVAC business owners, now is the time to frame this as a once-in-a-lifetime energy rebate change up to a benefit. It’s not just about saving money, it’s about doing it before the government changes the game forever on tax savings. Politics aside, this is a business opportunity. It gives your Selling Techs or Comfort Advisors the perfect motivator to close leads faster, position upgrades as urgent, and help homeowners feel smart, proactive, and financially savvy. 

I can't stress this enough, this is not a scare tactic, rather it's a strategic conversation starter that taps into Millennial home owners mindsets and value-driven decision-making. Train your team to lead with confidence, transparency, and a sense of now or never urgency. But why Millennial homeowners you ask…

Millennials (born 1980–1996, currently ages 27 to 44) are the largest generational group of homeowners today. They grew up online, expect transparent pricing, and have trust issues with outdated sales tactics.

Your campaign needs to deliver the following consumer driver elements to make an impact on Millennial homeowners:

• Researchable value such as checklists, FAQs, side-by-side comparisons

• Social proof like video reviews, shoutouts, before-and-after galleries

• DIY-style tools such as calculators, quote builders [like Eden Homes], scheduling options [like ServiceTitan Scheduler].

• Psychologically smart hooks like urgency, scarcity, stacking offers for greater value and savings display, story telling for where the homeowner is now in their plans. 

In my doctoral research on “Influences of Gamification on Millennial Consumers,” I discovered that three core psychological needs drive behavior:

1. Competence: Millennials want to feel like “smart” homeowners.   Add educational value: “Did You Know?” content, seasonal prep guides, and tax credit explainers.

2. Autonomy: They want to be in control of the process.  Offer instant online quotes, custom packages, and flexible service windows.

3. Relatedness: They buy from brands that reflect their values.  Show your commitment to energy savings, community, or tech innovation.

ADD THESE TRIGGERS TO YOUR FALL CAMPAIGN

This Fall, we’re encouraging a launch of a “60 Days Left to Save $2,000” campaign with stack-slide offers that layer scarcity, urgency, and bonus value to drive action. Here's a structure:

• Countdown 

• Financing bonus 

• Free upgrade 

• Projected savings

• Pricing range 

• Education content 

THE CLOCK IS TICKING

When midnight strikes on December 31, this tax credit ends. The Fall shoulder season is your chance to use the disappearing 25c tax credit to, drive leads, build awareness and support your capacity planning. These aren’t just abstract theories. These triggers have a real impact on purchase behavior, especially in service categories like HVAC, plumbing, and electrical.

This article was written by Dr. Anissa Villegas, co-owner of Marketing with a Flair and a data-driven strategist with a Doctorate in Business. Her research on marketing to Millennial consumers has influenced strategies nationwide, and she currently serves on research committees focused on expanding knowledge in strategic, results-driven marketing for the trades. Marketing with a Flair is a full service marketing agency focused on serving the home service industry.