25C Tax Credits
The Inflation Reduction Act of 2022 provides tax credits and point-of-sale rebates that can equal thousands of dollars for the installation of high-efficiency HVAC equipment.
What products are eligible?*
2024 Efficiency Standards
| 25C Tax Credit | Product | Type | Region | SEER2 | EER2 | HSPF2 | COP @ 5F | Capacity Ratio | Other Qualifiers |
|---|---|---|---|---|---|---|---|---|---|
| 30% of cost, up to $2,000 | Heat Pumps | Split Ducted | North South | ≥15.2 ≥15.2 | ≥10 ≥11.7 | ≥8.1 ≥7.8 | 1.75 - | ≥58% at 17°F/47°F or ≥70% at 5°F/47°F - | - |
| Non-Ducted | North South | ≥16 ≥16 | ≥9 ≥12 | ≥9.5 ≥9 | 1.75 - | ≥58% at 17°F/47°F or ≥70% at 5°F/47°F - | - | ||
| 30% of cost, up to $600 | Air Conditioners | Split AC | National | ≥16 | ≥12 | - | - | - | - |
| 30% of cost, up to $600 | Furnaces | Gas-Fired Forced Hot Air | National | - | - | - | - | - | ≥97% AFUE |
| 30% of cost, up to $600 | Boilers | Gas-Fired | National | - | - | - | - | - | ≥95% AFUE |
| 30% of cost, up to $600 | Tankless Water Heaters | Gas-Fired | National | - | - | - | - | - | ≥ 0.95 UEF |
2025 Efficiency Standards – NEW!
| 25C Tax Credit | Product | Type | Region | SEER2 | EER2 | HSPF2 | COP @ 5F | Capacity Ratio | Other Qualifiers |
|---|---|---|---|---|---|---|---|---|---|
| 30% of cost, up to $2,000 | Heat Pumps (Path A) | Split Ducted or Ductless | National | ≥16 | ≥9.8 | ≥8.5 | 1.75 | ≥60% at 5°F/47°F | - |
| Heat Pumps (Path B) | Split Ducted or Ductless | National | ≥16 | ≥11 | ≥8 | 1.75 | ≥45% at 5°F/47°F | - | |
| 30% of cost, up to $600 | Air Conditioners | Split Ducted or Ductless | National | ≥17 | ≥12 | - | - | - | - |
| 30% of cost, up to $600 | Furnaces | Gas-Fired or Forced Hot Air | National | - | - | - | - | - | ≥97% AFUE |
| 30% of cost, up to $600 | Boilers | Gas-Fired | National | - | - | - | - | - | ≥95% AFUE |
| 30% of cost, up to $600 | Tankless Water Heaters | Gas-Fired | National | - | - | - | - | - | ≥ 0.95 UEF |
Changes to note:
- North and South regionality are eliminated from a Tax Credit perspective.
- Ducted and Ductless are no longer separate categories.
- Capacity Ratio and COP are new specifications for dealers in the former “South.”
- ASHPs can qualify for up to $2,000 in tax credits via Path A or Path B.
- There are no changes to the dollar amount associated with qualifying equipment.
Refer to the current HVAC Distributors Price Book for a full list of AHRI-rated qualifying match-ups.
*This information does not and should not be considered tax advice. All information is for general purposes only. Contact your tax professional for specific, applicable details. Criteria not static and will change if CEE amends criteria.
Additional Resources:
- FAQs: Leveraging The 25C Tax Credit
- Video: How to Claim 25C/25D Tax Credits Including Dual Fuel Systems
Daikin | Amana | Goodman Tax Credits
Program Dates: Available for 2023-2032 Tax Years
Rebate Type: Tax Credit (Homeowner must claim the qualifying equipment on their tax return using Form 5695)
Qualifying Equipment:
Click on the brand below for a list of qualifying residential indoor comfort systems and the related Tax Credit Certificates.
| Qualifying Equipment | Tax Credit Certificates |
|---|---|
| Qualifying Daikin Equipment | Daikin Tax Credit Certificates |
| Qualifying Amana Equipment | Amana Tax Credit Certificates |
| Qualifying Goodman Equipment | Goodman Tax Credit Certificates |
Dunkirk Tax Credits
Program Dates: Available for 2023-2032 Tax Years
Rebate Type: Tax Credit (Homeowner must claim the qualifying equipment on their tax return using Form 5695)
Qualifying Equipment:
DKVLT-050, DKVLT-075, DKVLT-100, DKVLT-150, DKVLT-200, DKVLT-299, DKVX-050, DKVX-075, DKVX-100, DKVX-150, DKVX-200, DCB-125, DCC-150, ECR 97A-150
Dunkirk Tax Credit Certificate
Lochinvar Tax Credits
Program Dates: Available for 2023-2032 Tax Years
Rebate Type: Tax Credit (Homeowner must claim the qualifying equipment on their tax return using Form 5695)
Qualifying Equipment:
KHB055N, KBN081, WHB055N, WHN055, KHB055L, KBL081, WHB055L, WHL055, KHB085N, KBN106, WHB085N, WHN056, KHB085L, KBL106, WHB085L, WHL056, KHB110N, KBN151, WHB110N, WHN085, KHB110L, KBL151, WHB110L, WHL085, KHB155N, KBN211, WHB155N, WHN086, KHB155L, KBL211, WHB155L, WHL086, KHB199N, KBN286, WHB199N, WHN110, KHB199L, KBL286, WHB199L, WHL110, KHB285N, NKB080N, WHB285N, WHN111, KHB285L, NKB080L, WHB285L, WHL111, KHN055, NKB110N, WHB399N, WHN155, KHL055, NKB110L, WHB399L, WHL155, KHN085, NKB150N, WHN156, KHL085, NKB150L, WHL156, KHN110, NKB199N, WHN199, KHL110, NKB199L, WHL199, KHN155, NKC110N, WHN200, KHL155, NKC110L, WHL200, KHN199, NKC150N, WHN285, KHL199, NKC150L, WHL285, KHN285, NKC199N, WHN286, KHL285, NKC199L, WHL286
Lochinvar Tax Credit Certificate
Rinnai Tax Credits
Program Dates: Available for 2023-2032 Tax Years
Rebate Type: Tax Credit (Homeowner must claim the qualifying equipment on their tax return using Form 5695)
Qualifying Equipment:
Water Heaters: Energy Factor >=0.0.95
Boilers: AFUE >=95
Thermo Pride Tax Credits
Program Dates: Available for 2023-2032 Tax Years
Rebate Type: Tax Credit (Homeowner must claim the qualifying equipment on their tax return using Form 5695)
Qualifying Equipment:
ENERGY STAR Certified Spirit Oil Furnaces:
- VH8FA119T60B
- VHF-ABT