25C Tax Credit
Investing in clean energy has never been easier
Homeowners who purchase qualifying HVAC systems can claim tax benefits under the reinstated Inflation Reduction Act.
The Act was signed into law in August 2022 and provides incentives for investing in energy-efficient technology, which includes high-efficiency heating and air conditioning equipment. The non-refundable tax credit went into effect on January 1, 2023, with eligible equipment offering savings of up to $2,000. Seize the opportunity to invest in a high-efficiency HVAC system and reap the rewards of a cleaner and more sustainable future!
DOES MY UNIT QUALIFY FOR THE TAX CREDITS?
Before replacing your HVAC equipment, check to see if your unit meets the criteria below.
| Product Type | Tax Credit Amount | Region | AFUE | SEER2 | EER2 | HSPF2 | COP (5°F) | Capacity Ratio |
|---|---|---|---|---|---|---|---|---|
| Gas Furnace | $600 | All | ≥ 95% | N/A | N/A | N/A | N/A | N/A |
| Gas Boilers | $600 | All | ≥ 95% | N/A | N/A | N/A | N/A | N/A |
| Air Conditioners |
$600 | All | N/A | ≥ 16.0 | ≥ 12.0 | N/A | N/A | N/A |
| Heat Pumps (Ducted) |
$2000 | S & SW | N/A | ≥ 15.2 | ≥ 11.7 | ≥ 7.8 | N/A | ≥ 58% at 17°F/47°F OR ≥ 70% at 5°F/47°F |
| $2000 | N | N/A | ≥ 15.2 | ≥ 10.0 | ≥ 8.1 | 1.75 | ||
| Heat Pumps (Ductless) |
$2000 | S & SW | N/A | ≥ 16.0 | ≥ 12.0 | ≥ 9.0 | N/A | ≥ 58% at 17°F/47°F OR ≥ 70% at 5°F/47°F |
| $2000 | N | N/A | ≥ 16.0 | ≥ 9.0 | ≥ 9.5 | 1.75 | ||
| Packaged Air Conditioners |
$600 | All | N/A | ≥ 15.2 | ≥ 11.5 | N/A | N/A | N/A |
| Packaged Heat Pumps |
$2000 | S & SW | N/A | ≥ 15.2 | ≥ 10.6 | ≥ 7.2 | N/A | ≥ 58% at 17°F/47°F OR ≥ 70% at 5°F/47°F |
| $2000 | N | N/A | ≥ 15.2 | ≥ 10.0 | ≥ 8.1 | 1.75 |
HOW DO I APPLY FOR THE TAX CREDIT?*
HERE ARE THE BASICS:
STEP 1
Work with your contractor to install your qualifying HVAC equipment.
STEP 2
Save your receipts and make copies of the documents you receive from your contractor (including your tax credit certificate). This will help you fill out the forms you will submit with your taxes.
STEP 3
You or your accountant will file IRS Form 5695 with your tax return.
We recommend contacting a licensed tax professional for further information.
Look for the 25C eligible shield for qualifying products!
By choosing a qualifying heat pump, you can save $2,000 under the 25C tax credit.
This can offset installation costs by up to 30%!
Choose a heat pump for the biggest credit!
A heat pump is an essential part of your HVAC system that is very similar to an air conditioner. Like an air conditioner, it transfers heat using refrigerant; the key difference is that a heat pump can draw heat from the outdoor air and move it inside to keep you warm during the winter. By using refrigerant, a heat pump is a more energy-efficient way to heat using electricity.
DISCLAIMER:
* Nortek Global HVAC (”NGH”) is not a tax advisor and does not make any representation, warranty, guarantee or other assurance as to whether a particular matchup qualifies or is eligible for a tax credit. This content has been prepared for informational purposes only and is not intended to provide, and should not be relied on for, tax advice. The IRS is responsible for the implementation and administration of tax certificates. There are important requirements and limitations for the homeowner to qualify for tax credits. Moreover, the tax laws are subject to change. As a result, NGH highly recommends that you and your customers consult with a tax advisor regarding a homeowner’s qualification for a tax credit in their particular circumstance and verify and review the applicable tax laws and regulations. NGH expressly disclaims all liability for damages of any kind arising out of a homeowner’s claim for a tax credit. This information is subject to change without notice.