Federal energy tax credits are changing soon. Here’s what HELOC customers need to know to maximize savings before December 31, 2025.
What’s Changing with the One Big Beautiful Bill?
The One Big Beautiful Bill became federal law on July 4, 2025, and it brings important changes for homeowners planning energy-efficient improvements. If you’ve been thinking about solar panels, new windows, or upgrading your heating system, there’s a critical deadline approaching.
Mark your calendar: December 31, 2025
This is the last day to complete qualifying energy improvements and still receive the current level of federal tax credits. After this date, many of these valuable credits will be reduced or eliminated entirely.
Which Home Improvements Are Affected?
The One Big Beautiful Bill impacts several popular home energy upgrades that many HELOC customers finance:
Deadline: December 31, 2025
- Solar panel systems
- Energy-efficient exterior doors, windows, and skylights
- Home insulation improvements
- Electric or natural gas heat pump water heaters
- Electric or natural gas heat pumps
- Biomass stoves and boilers
Deadline: June 30, 2026
- Home EV charging equipment
The “Placed in Service” Requirement
Here’s the crucial detail: improvements must be fully installed, operational, and “placed in service” by the deadline dates to qualify under current tax credit rules. Simply ordering equipment or starting construction isn’t enough.
What “placed in service” means:
- Solar systems: Panels installed and connected to your home’s electrical system
- HVAC equipment: Heating and cooling systems fully installed and operational
- Windows and doors: Complete installation finished, not just delivered
- Insulation: Installation completed throughout designated areas
Planning backwards from December 31, 2025, most projects need to start by October or November to ensure completion on time.
Your HELOC Can Help You Act Quickly
Despite these upcoming changes, your Home Equity Line of Credit remains a powerful tool to finance these improvements before the deadline. Here’s why a HELOC makes sense for time-sensitive energy upgrades:
Immediate Access to Funds
Unlike other financing options that can take weeks to process, you can access your HELOC funds quickly to secure contractors and materials before the busy end-of-year rush.
Flexibility for Project Management
Draw funds as needed throughout your project timeline, paying interest only on what you use.
Potentially Tax-Deductible Interest
HELOC interest may be tax-deductible when used for home improvements (consult your tax advisor for specifics).
Competitive Rates
HELOCs typically offer lower interest rates than credit cards or personal loans, making them an economical choice for large home projects.
Action Steps to Take Now
1. Get Multiple Quotes Immediately
Contractors are already booking into early 2026. Start getting quotes now for any energy improvements you’re considering.
2. Review Your HELOC Availability
Check your current HELOC balance and available credit. Contact us if you need to discuss increasing your credit line.
3. Prioritize High-Impact Improvements
Focus on projects that offer the best combination of energy savings and tax benefits:
- Solar panel systems (30% federal tax credit)
- Heat pump installations
- Comprehensive insulation upgrades
4. Plan Your Timeline Carefully
Remember, projects must be completed by December 31, 2025. Working backwards:
- October 2025: Latest to start most solar installations
- November 2025: Latest for smaller projects like windows or doors
- September 2025: Recommended start date for complex HVAC systems
5. Keep Detailed Records
Save all invoices, permits, and completion certificates. You’ll need these for tax credit claims.
Still Valuable After the Deadline
Even after December 31, 2025, home energy improvements remain worthwhile investments. They can:
- Reduce monthly utility bills
- Increase home value
- Improve comfort and indoor air quality
- Provide energy independence
Your HELOC continues to be an excellent financing option for these improvements, even without the federal tax incentives.
We’re Here to Help
Making energy improvements to your home is an investment in your family’s comfort, your property value, and your future energy savings. While the One Big Beautiful Bill creates some time pressure, we want to make sure you have the resources to take advantage of these opportunities.
Amerant Bank understands that every homeowner’s situation is unique. Whether you’re considering a major solar installation or planning smaller efficiency upgrades, we’re ready to work with you to structure your HELOC in a way that makes sense for your timeline and budget.
How we can support your project:
- Help you understand your available credit and options
- Work with you to plan funding draws
- Provide guidance on managing your HELOC during construction
The December 31, 2025 deadline may seem daunting, but with proper planning and the right financing in place, you can still take advantage of these valuable tax credits. Even if you decide to move forward with improvements after the deadline, energy-efficient upgrades continue to offer long-term benefits through reduced utility costs and increased home value.
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