Energy Efficient Home Improvement Credit for Qualifying Residential Energy Property Expenditures
(25C Federal Tax Credit Program)
The Energy Efficient Home Improvement Credit (formerly the Nonbusiness Energy Property Credit) authorized under Section 25C of the Internal Revenue Code (IRC) has been extended to property placed in service through December 31, 2032.
These tax credits apply to Residential Energy Property Expenditures such as Heat Pumps, Central Air Conditioners and Natural Gas Furnaces. See below for equipment qualifying criteria.
For more information on these tax credits: https://www.irs.gov/pub/irs-pdf/i5695.pdf
Heat Pumps
- Ducted Heat Pump Split Systems, (or Mixed Ducted and Non-Ducted)
- The products listed below are “Qualified Energy Property” (26USC§25C) when properly matched as a system with an indoor coil and/or furnace and only in the Region indicated. For ducted air source split-system heat pumps, equipment must meet either (a) criteria for the North and Canada Region or (b) criteria for the South Region. In order to qualify under the North and Canada Region, systems must meet or exceed 15.2 SEER2, 10.0 EER2, 8.1 HSPF2, 1.75COP at 5°F, and either 58% capacity ratio at 17°F or 70% capacity ratio at 5°F. In order to qualify under the South Region, systems must meet or exceed 15.2 SEER2, 11.7 EER2 and 7.8 HSPF2. Individuals who purchase and place into service qualifying equipment between January 1, 2024, and December 31, 2024 may qualify for a non-refundable tax credit of up to $2000. Additional limitations may apply*.
- Please click on the Tax Credit Certificate below for additional information and to determine if your model qualifies.
- Ductless Heat Pump Split Systems, (Non-Ducted)
- The products listed below are “Qualified Energy Property” (26USC§25C) when properly matched as a system with an indoor coil(s) and only in the Region indicated. For non-ducted air source heat pumps, equipment must meet either (a) criteria for the North and Canada Region or (b) criteria for the South Region. In order to qualify under the North and Canada Region, systems must meet or exceed 16.0 SEER2, 9.0 EER2, 9.5 HSPF2, 1.75COP at 5°F, and either 58% capacity ratio at 17°F or 70% capacity ratio at 5°F. In order to qualify under the South Region, systems must meet or exceed 16.0 SEER2, 12.0 EER2 and 9.0 HSPF2. Individuals who purchase and place into service qualifying equipment between January 1, 2024, and December 31, 2024 may qualify for a non-refundable tax credit of up to $2000. Additional limitations may apply*.
- Please click on the Tax Credit Certificate below for additional information and to determine if your model qualifies.
- Packaged Heat Pumps
- The products listed below are “Qualified Energy Property” (26USC§25C) only in the Region indicated. For Packaged Air-Source Heat Pumps, equipment must meet either (a) criteria for the North and Canada Region or (b) criteria for the South Region. In order to qualify under the North and Canada Region, equipment must meet or exceed 15.2 SEER2, 10.0 EER2, 8.1 HSPF2, 1.75COP at 5°F, and either 58% capacity ratio at 17°F or 70% capacity ratio at 5°F. In order to qualify under the South Region, systems must meet or exceed 15.2 SEER2, 10.6 EER2 and 7.2 HSPF2. Individuals who purchase and place into service qualifying equipment between January 1, 2024, and December 31, 2024 may qualify for a non-refundable tax credit of up to $2000. Additional limitations may apply*.
- Please click on the Tax Credit Certificate below for additional information and to determine if your model qualifies.
Region Identification.
- CEE classifies states and provinces into two Regions:
- North and Canada. This Region includes the States of AK, CO, CT, ID, IL, IN, IA, KS, ME, MA, MI, MN, MO, MT, NE, NH, NJ, NY, ND, OH, OR, PA, RI, SD, UT, VT, WV, WI, WY and all Canadian Provinces.
- South. This Region includes the States of AL, AZ, AK, CA, DE, FL, GA, HI, KY, LA, MD, MS, NV, NM, NC, OK, SC, TN, TX, VA and the District of Columbia.
Central Air Conditioners
- Ducted AC Split Systems (or Mixed Ducted and Non-Ducted)
- The products listed below are “Qualified Energy Property” (26USC§25C) when properly matched as a system with an indoor coil and/or furnace. For ducted split-system air conditioners, the matched system must meet or exceed 16.0 SEER2 and 12.0 EER2. Individuals who purchase and place into service qualifying equipment between January 1, 2024, and December 31, 2024 may qualify for a non-refundable tax credit of up to $600 per system, subject to an annual limit of $1200 per taxpayer. Additional limitations may apply*.
- Please click on the Tax Credit Certificate below for additional information and to determine if your model qualifies.
- Ductless AC Split Systems (Non-Ducted)
- The products listed below are “Qualified Energy Property” (26USC§25C) when properly matched as a system with appropriate indoor coil(s). For non-ducted split-system air conditioners, the matched system must meet or exceed 16.0 SEER2 and 12.0 EER2. Individuals who purchase and place into service qualifying equipment between January 1, 2024, and December 31, 2024 may qualify for a non-refundable tax credit of up to $600 per system, subject to an annual limit of $1200 per taxpayer. Additional limitations may apply*.
- Please click on the Tax Credit Certificate below for additional information and to determine if your model qualifies.
- Packaged Air Conditioners
- The products listed below are “Qualified Energy Property” (26USC§25C). In order to qualify, packaged air conditioners must meet or exceed 15.2 SEER2 and 11.5 EER2. Individuals who purchase and place into service qualifying equipment between January 1, 2024, and December 31, 2024 may qualify for a non-refundable tax credit of up to $600 per system, subject to an annual limit of $1200 per taxpayer. Additional limitations may apply*.
- Please click on the Tax Credit Certificate below for additional information and to determine if your model qualifies.
Natural Gas Furnaces
- Gas-Fired Furnaces
- The products listed below are “Qualified Energy Property” (26USC§25C). For gas-fired forced air furnaces, equipment must meet or exceed 97% AFUE in order to qualify. Individuals who purchase and place into service qualifying equipment between January 1, 2024, and December 31, 2024 may qualify for a non-refundable tax credit of up to $600 per system, subject to an annual limit of $1200 per taxpayer. Additional limitations may apply*.
- Please click on the Tax Credit Certificate below for additional information and to determine if your model qualifies.
The make, model number, and other suitable identifiers of the Qualified Energy Property can be found on the Air-Conditioning, Heating, & Refrigeration Institute (AHRI) directory (www.ahridirectory.org).
An AHRI certificate may be required to ensure a properly matched system and verify tax credit status.
Contact your installing contractor for more information.
* Daikin Comfort Technologies Manufacturing, L.P. does not offer tax advice. This information is provided for discussion purposes only and is provided as a generic guideline. This information does not represent tax advice. Before filing for any tax credit with respect to these products, Daikin Comfort Technologies Manufacturing, L.P. recommends that consumers consult with a tax professional to determine the application of such credits to their particular situation.