Tax Credit

ENERGY EFFICIENT

HOME IMPROVEMENT TAX CREDIT (25C)
BIG SAVINGS AVAILABLE FOR HOMEOWNERS

The Energy Efficient Home Improvement Tax Credit (25C) is part of the Inflation Reduction Act (IRA), which was signed in 2022 and includes nearly $370B for climate and energy programs. It is intended to highlight energy-efficient solutions by providing homeowners credits on HVAC products that meet the 2023 highest non-advanced Consortium for Energy Efficiency (CEE) tier.

     > Up to 30% of installation costs for qualified expenditures, with an annual maximum of $1,200

     > Up to $600 each for qualified air conditioners and furnaces

     > Up to $2,000 for qualified heat pumps, which have a separate aggregate yearly limit; the maximum total yearly 25C credit amount may be up to $3,200.

Effective January 1, 2023, the expanded version of the 25C program includes generous annual limits (not lifetime), meaning that the same customer could benefit from the credit with energy efficient upgrades year after year. This expansion will extend the program out to December 31st, 2032.

Qualifying Consortium for Energy Efficiency Tiers

The CEE defines efficiency tiers for Residential HVAC, which determine the equipment that qualifies for the 25C homeowner tax credit. As part of the Electric Equipment update in 2022, the CEE introduced a geographical component for Heat Pumps (North, South).

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CEE Regional Breakdown

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Homeowner Tax Credit Filing Process

Specific information regarding how to claim Home Improvement Tax Credits for 2023 and beyond is forthcoming pending the release of instruction from the IRS.

MORE INFORMATION & RESOURCES

Check out the Hub on ASDeaIerNet to find the most up-to-date resources regarding the Inflation Reduction Act, including 25C tax credit qualifying systems, tax credit podcasts, downloadable resources, and more.

Visit ASDeaIerNet > Marketing Center > Playbook HUB > Electrification of Heat Hub — Inflation Reduction Act Resources

In addition, americanstandardair.com provides details on the Inflation Reduction Act and includes an interactive tool for consumers to determine incentives available in their area.

Visit americanstandardair.com > Pricing > Offers, Rebates & Tax Credits or scan the QR code.

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Innovating for a sustainable future: As an industry leader in home comfort and HVAC innovation, American Standard is committed to energy efficient solutions and reducing our customers’ carbon footprint.

Information is subject to change.

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