The Inflation Reduction Act (IRA) was positioned to be a game-changer for home energy upgrades and high performance contractors. But as we move into Q2 of 2025, confusion still reigns. Delays, funding freezes, and a lack of clear information around the future of state-implemented HOMES and HEAR rebate programs as well as the solar and 25C federal tax credits have left many contractors unsure of how to move forward.
At Energy Circle, we’re tracking developments closely. In a recent webinar, we laid out practical strategies to help HVAC, home performance, and solar contractors stay ahead—regardless of where the IRA storyline goes next.
Here are the top takeaways.
1. Keep Your Incentive Content Live and Updated
First, don’t panic. We’ve had contractors ask whether they should remove incentive pages from their websites, and our answer is a confident no.
Even if you’ve paused any ad campaigns that include IRA messaging or language, you’ve likely already built up SEO value for your website around incentive keywords. Removing pages or information can damage your rankings and visibility. Plus, many homeowners are still seeking out rebate information. Your incentive-savvy positioning is a competitive edge, especially when paired with clear and honest updates.
So, keep your content current. Don’t overpromise. Make it clear what’s active, what’s paused, and how you can help homeowners make sense of it all and maximize their savings based on what’s available.
2. Use Honesty to Build Trust—and Stand Out
Many surveys show that homeowners struggle to trust home service contractors. Normally, being the expert with all the answers would help close that gap.
But in this specific instance, you can turn what otherwise might be a weakness (admitting “We don’t know”) into a strength.
Position yourself as the contractor who tells it like it is: “Here’s what we know, here’s what we don’t, and here’s how we’re staying informed.” When others are making vague claims or selling incentives that may not exist, your transparency will build credibility and long-term trust.
3. Lean Into the Safest Bets, Including the 25C Tax Credit
If you operate in a state with independent rebate programs that aren’t tied to IRA funding, lean in. Those programs are more stable and still great tools for driving leads.
Of the federal incentives, we think that the 25C tax credit and the solar tax credit are currently the most stable bets. They don’t require state-level rollout, and unless federal legislation changes, they’re unlikely to vanish overnight. We’re continuing to market tax credits and are encouraging contractors to do the same.
Insulation contractors: If you’re not enrolled in the 25C Means Business program, now’s the time. You’ll get free, professional marketing assets to help you promote tax credits and close more jobs.
4. Be Ready for a Quick Switch to Urgency Messaging
One of the most likely scenarios we’re preparing for is reduced—but not eliminated—IRA rebate funding or a shortened lifespan for tax credits (currently set to run through 2032).
If that happens, urgency will be the name of the game: “These incentives are going away—act now.” Contractors who are ready with urgency-based campaigns will be able to seize the moment.
So start preparing now with flexible landing pages, email templates, and ad copy that you can activate quickly.
5. Diversify Messaging and Don’t Overcommit to Incentives
It’s tempting to center all your marketing around rebates and tax credits—but remember, incentives aren’t the only motivator.
Comfort. Health. Energy savings. Electrification readiness.
These are all powerful drivers that won’t fluctuate with politics or funding delays. Continue reinforcing the long-term value of high-performance upgrades, regardless of what happens in Washington.
ALSO: Engage with Your State Energy Office!
IRA incentives aren’t as much of a Red vs. Blue issue as you might expect. In fact, 21 Republican lawmakers recently signed a letter supporting energy tax credits—a strong signal of bipartisan backing.
Make your voice heard. Get involved with your state energy office. Join industry coalitions like the Building Performance Association. Local contractor feedback plays a critical role in shaping how (and whether) rebate programs move forward.