FEDERAL INCENTIVES: TAX CREDITS & REBATES

FEDERAL INCENTIVES: TAX CREDITS & REBATES
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What You Need to Know: 2022 Installations

As part of the Inflation Reduction Act of 2022, the US Internal Revenue Service (IRS) retroactively extended individual federal tax credits for qualified high-efficiency heating and cooling system installations in primary residences, from January 1, 2022, through December 31, 2022. Incentive levels and product qualification criteria remain unchanged from prior federal tax credits.

Energy Efficient Home Improvement Tax Credit EEHI (Non-Business Energy Property Credit 25C)

The Sure Comfort® Air Conditioning Division of Rheem Sales Company, Inc. certifies that the models listed here (if placed in service after December 31, 2021, and before January 1, 2023, in a homeowner’s primary residence) meet the criteria of "Qualified Energy Property" as set forth by Section 25C of the Internal Revenue Code. The maximum amount an eligible homeowner may receive in federal tax credits for purchasing and installing qualifying products, whether those purchases are in the form of upgraded windows, insulation, HVAC equipment or other eligible improvements, is 10% of the installed cost, up to $500.

Effective January 1, 2022, through December 31, 2022
Effective January 1, 2022, through December 31, 2022
Limited to primary residences
Limited to primary residences
No income requirements
No income requirements

Qualifications

VIEW EEHI QUALIFICATIONS (2022 INSTALLATIONS) >

2022 Manufacturer Federal Tax Credit Form

DOWNLOAD 2022 MANUFACTURER FEDERAL TAX CREDIT FORM — M-PLATFORM MODELS >

Frequently Asked Questions

DOWNLOAD THE IRS FACT SHEET >

What You Need to Know: 2023+ Installations

We want to help you take advantage of new incentives that could affect how you replace your heating and cooling systems. As part of the Inflation Reduction Act of 2022, you can now take advantage of enhanced tax incentives and a new state-administered consumer rebate program that were designed to encourage you to upgrade your HVAC systems with heat pumps and high-efficiency air conditioners and furnaces. This section provides important information on the Energy Efficient Home Improvement Federal Tax Credit (Tax Section 25C) and the High Efficiency Electric Home Rebate Program.

Energy Efficient Home Improvement Federal Tax Credit EEHI (Tax Section 25C)

Effective January 1, 2023, the Energy Efficient Home Improvement Federal Tax Credit (EEHI) gives you a tax credit equal to 30% of equipment and installation costs for the highest efficiency tier products, up to $600 for qualified air conditioners and $600 for qualified furnaces, as well as up to $2,000 for qualified heat pumps. Here are a few things you should know about the EEHI:

Effective January 1, 2023, through December 31, 2032
Effective January 1, 2023, through December 31, 2032
No lifetime tax credit cap
No lifetime tax credit cap
Not limited to primary residences
Not limited to primary residences
No income requirements
No income requirements
Increases the percentage of the credit from 10% to 30% of equipment and installation cost
Increases the percentage of the credit from 10% to 30% of equipment and installation cost

Annual $1,200 nonrefundable tax credit for eligible HVAC systems, insulation and air sealing; and a $2,000 tax credit for eligible heat pumps

Qualifications

Split and Packaged Air Conditioners and Heat Pumps:

Meet or exceed CEE highest efficiency tier (excluding advanced tier)

Gas Furnaces:≥ 97% AFUE

To Qualify, Homeowners Must Owe Taxes

Tax credit offsets federal taxes owed

What is CEE? The Consortium of Energy Efficiency (CEE) is a network of gas and electric efficiency program administrators and sets CEE product tiers to differentiate highly efficient HVAC equipment for incentive and promotion programs.
Important Eligibility NoticePer current US Treasury guidance, we cannot confirm that 2022 and prior manufactured HVAC systems (M-Platform) that are approved for 2023 installations, but were rated against previous energy efficiency standards of SEER/EER/HSPF, are eligible for federal tax credits under the IRA of 2022.
SureComfort See What Qualifies

Frequently Asked Questions

DOWNLOAD THE IRS FACT SHEET >


HIGH EFFICIENCY ELECTRIC HOME REBATE PROGRAM (coming soon)

The Electric Home Rebate Program offers consumer rebates on qualifying heat pumps, panel replacements and electrical wiring. Here are a few things you should know about the Electric Home Rebate Program:

Program launch is expected no sooner than Q4 2023 / Q1 2024
Funds apportioned to states based on population formula
Eligible heat pumps systems are ENERGY STAR® certified
States could contract rebate function to 3rd parties for multifamily customers for installation of electrification equipment

Available Tax Rebates Based on Income

< 80% of Area Median Income
Up to $8,000 for electric heat pumps Up to $8,000 for electric heat pumps
Up to $4,000 for panel replacement Up to $4,000 for panel replacement
Up to $14,000 per household Up to $14,000 per household
80–150% of Area Median Income
Up to $4,000 for electric pumps Up to $4,000 for electric heat pumps
Up to $2,000 for panel replacement Up to $2,000 for panel replacement
Up to $7,000 per household Up to $7,000 per household

Qualifications

VIEW QUALIFYING EQUIPMENT >

Frequently Asked Questions

Q: Is the $2,000 tax credit for a heat pump system conditioned on replacing a central air conditioner and furnace?

A: No, replacement systems are eligible, and consumers who choose to replace an existing heat pump with a new heat pump can claim the credit.

Q: When will the High Efficiency Electric Home Rebate Program launch?

A: The Department of Energy is expected to issue rebate program rules in Q2 2023 and we expect the states to set up rebate programs for state constituent participation in Q4 of 2023.

Q: Can a customer claim both an Energy Efficient Home Improvement tax credit and a rebate through the High Efficiency Electric Home Rebate Program?

A: There is no statutory prohibition on a customer claiming both a credit and rebate, but the US Treasury Department must issue final implementing rules on incentive layering.

Q: How can I determine my eligibility to access a rebate through the High Efficiency Electric Home Rebate Program?

A: The US Department of Energy State & Community Energy Programs Office provides consumers with additional information on the High Efficiency Electric Home Rebate Program, including income qualification rules.

Find Local Incentives

Additional state, local and utility rebates may be available in your area. For more information, visit the Warranty Center.

Warranty Center
Maximize Your Savings

Get our Downloadable IRA Reference Guide to discover how you can take advantage of tax incentives in 2023 and beyond.

Downloadable IRA Reference Guide
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