What the 2025 New Refrigerant Regulations Mean for Commercial HVAC
If you’re responsible for managing or upgrading a commercial property, the 2025 New Refrigerant Regulations aren’t something to put off. These new rules are already reshaping how HVAC systems are designed, installed, and maintained — and if you own or manage commercial property, it could directly affect your budget and planning.
This isn’t just another regulatory speed bump. It’s a full transition away from traditional refrigerants like R-410A and toward newer, more environmentally-conscious alternatives. Whether you’re planning a renovation or simply want to avoid higher costs later, there are several compelling reasons to get proactive, and our expert team at Air-Tro is here to help you navigate your way.
R-410A Phaseout 2025: Why the Clock Is Ticking
While R-410A replaced Freon (R-22) as the industry standard two decades ago, its high Global Warming Potential (GWP) has made it a target for environmental reform. Starting January 1, 2025, manufacturers can no longer produce new HVAC systems using R-410A to align with EPA regulations under the AIM Act. That’s forcing manufacturers to redesign systems, creating a ripple effect for contractors, building owners, and facility managers alike.
Production halts, retooling downtime, and compliance costs are already pushing prices upward. And with some of the new refrigerants being classified as “mildly flammable,” additional safety components are required — raising the baseline cost of every new system.
If you’re waiting to upgrade your commercial HVAC system, know this: you may be paying more later for less flexibility.
Transitioning to Low GWP Refrigerants for HVAC
Moving forward, all new HVAC systems must use low GWP (750 or lower) refrigerants for HVAC, such as R-454B, R-466A, and R-32, each offering a dramatic reduction in greenhouse gas emissions.
These next-generation refrigerants also bring performance benefits, such as:
- Faster, more efficient cooling
- Reduced energy consumption and utility costs
- Lower system wear and longer service life
And this isn’t just a trend — it’s a requirement. According to the California Air Resources Board (CARB), regulations have been introduced to eliminate the use of very high-GWP refrigerants in non-residential systems. Beginning in 2025, most home and commercial air conditioning equipment sold or installed in California must comply with strict new GWP limits to align with the state’s broader goals for climate action and emissions reduction.
It’s a win-win — better for the planet and better for your business’s bottom line.
However, not all refrigerants are equal. Some require specific system compatibility or advanced safety measures, which is why it’s crucial to consult with a licensed HVAC expert at Air-Tro before making a switch.
Commercial HVAC Upgrade Tax Incentives: What’s Still Available in 2025?
Some of the big tax perks from 2024 have changed, but that doesn’t mean you’ve missed your window. There are still real savings on the table if you’re upgrading your HVAC system.
Section 179 hasn’t gone away. If you’re putting in a new HVAC system, there’s still a chance to deduct a portion of the cost on your 2025 taxes. That said, be sure to check with your CPA before making any final decisions.
Also, bonus depreciation hasn’t disappeared — it’s just been reduced to 40%. That means you can still write off a chunk of your HVAC investment upfront.
Additionally, many utility companies in California are still offering rebates or grant programs for upgrades. These are often worth thousands, and many contractors, including Air-Tro, can help you find and apply for them.
Even with fewer incentives than last year, now is still a smart time to move forward. Costs for equipment and labor are trending upward. Acting sooner helps avoid price hikes, inventory issues, and compliance headaches later.
Commercial About the 2025 Refrigerant Regulations
Will Retrofitting My Existing System Allow Me to Comply with 2025 Refrigerant Rules?
In most cases, retrofitting a current R-410A system to accommodate low-GWP refrigerants is not practical or safe. These newer refrigerants often operate at different pressures and have unique chemical properties, which means they require entirely new system designs. Most commercial properties will need full equipment replacement to stay compliant.
What Does A2L Classification Mean, and Why Should I Care?
You’ll start seeing more systems using A2L refrigerants, which are considered mildly flammable. Using A2Ls may require extra precautions, such as leak-detection sensors or added ventilation in certain spaces. It’s less about risk and more about making sure everything’s installed and maintained the right way and in line with local building codes.
What Does This Mean for My Service Contract?
You can expect more detailed inspections for leaks and monitoring of refrigerant performance. Technicians may also need updated training or certification, which could affect availability or service timelines. It’s wise to plan for those changes now.
2025 Refrigerant Changes Create Room for Smart Planning
The 2025 new refrigerant regulations are more than just a compliance checkbox — they’re a smart business move. From lower utility bills to limited-time tax benefits, getting ahead of this industry-wide shift can position your company for long-term savings and sustainability.
We’ve already helped dozens of commercial clients prepare for the 2025 refrigerant changes, and we’re ready to help your business do the same. Call Air-Tro now at (626) 357-3535, or download our extensive whitepaper now and start planning for your building’s future.