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With Federal Energy Tax Credits Ending This Year, Homeowners Should Act Fast

1. Federal energy tax credits for HVAC expire Dec. 31, 2025. 2. Frontdoor offers savings for HVAC systems to its members. 3. Eligible purchases before year-end can still receive tax credits. 4. Upgrading HVAC can lower utility bills and increase home value. 5. Frontdoor provides discounts on top HVAC brands through bulk purchasing.

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Why Bullish?

The expiration of tax credits may spur urgent upgrades, benefiting Frontdoor's sales. Historical data has shown that promotional offerings often correlate with increased sales volumes in home markets.

How important is it?

The article directly highlights Frontdoor's strategic offerings in light of impending changes to tax incentives, showing a clear link to potential sales growth.

Why Short Term?

The impact is immediate due to the approaching tax credit deadline, likely increasing sales soon. An example is seen when previous incentives led to surge buying in home improvement sectors.

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Federal energy tax credits end Dec. 31, 2025 – Homeowners considering a new HVAC system are encouraged to act soon

With passage of the One Big Beautiful Act in early July, the home energy tax credits for clean energy systems and appliances provided in the Inflation Reduction Act of 2022 will no longer be available after December 31, 2025. Homeowners who purchase a qualifying new Heating, Ventilation and Air Conditioning (HVAC) system after the end of this year will not be eligible for tax credits of up to $3,200.*

However, Frontdoor, Inc. (Frontdoor) can help in a big way!

"Under our New HVAC Program, American Home Shield (AHS) members and Frontdoor app users could save thousands of dollars on name brand HVAC systems**," said Kathy Collins, Frontdoor's chief revenue officer. "Plus, our members could still be eligible for the tax credit if they purchase and install a qualifying system before the end of the year."

"Our members can also get top HVAC brands such as Goodman, Carrier and Trane," Collins said. "Additionally, because of the volume HVAC systems and equipment we purchase annually, we can offer big discounts, helping our members save money."

Reasons to Upgrade Now

Besides the potential tax credit, there are many benefits to upgrading to an energy-efficient HVAC system. These systems can help:

  • Lower home utility bills
  • Improve home comfort, especially if your current system is old or inefficient
  • Boost your home's value when it's time to sell
  • Reduce your home's emissions and energy use

For more information through AHS, please go here. For more information for Frontdoor app users, please go here.

* For more information on the federal tax credit, including eligibility requirements, refer to EnergyStar.gov and consult with a tax professional.

** Pricing and amount of savings will vary based on location and equipment availability. Not available in all areas.

About Frontdoor, Inc.

Frontdoor (NASDAQ:FTDR) is the industry leader in home warranties and new home structural warranties, and a leading provider of on-demand home repair and maintenance services. As the parent company of two leading brands – American Home Shield and 2-10 Home Buyers Warranty – totaling more than two million members – we bring over 50 years of experience in the home warranty category, a cultivated national network of independent service contractors, and a reputation for delivering quality service and product innovation. American Home Shield, the leader in home warranties, gives homeowners peace of mind, budget protection and convenience, covering up to 29 home systems and appliances from costly and unexpected breakdowns. 2-10 Home Buyers Warranty is the leader in new home structural warranties, providing home builders with coverage for structural failures. These two brands, together with Frontdoor's cutting-edge on-demand services, provide an unbeatable combination that meets the full suite of homeowner repair and maintenance needs. For more information about Frontdoor, Inc., please visit frontdoorhome.com.

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Media Contacts:

Alison Bishop

901.701.5198

Mediacenter@ahs.com

Tom Collins

901.701.5198

Mediacenter@ahs.com

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