In August, the Inflation Reduction Act (IRA) was signed, which includes nearly $370 billion dedicated to climate and energy programs. Included within the IRA was guidance that the existing 25C homeowner tax credit would be extended and expanded upon. Beginning in 2023, the expanded version of 25C, now called the Energy Efficient Home Improvement Tax Credit, will now provide annual tax credit opportunities for homeowners who purchase select HVAC equipment meeting the highest non-advanced Consortium for Energy Efficiency (CEE) tier. Previously, the 25C tax credit was a one-time lifetime credit.
On Friday, November 18, the CEE sent out a press release announcing the new tiers for Residential Electric HVAC effective Jan. 1, 2023. The CEE tier guidelines will determine which equipment qualifies for the 25C homeowner tax credit. Gas furnace requirements remain unchanged.
To learn more, visit the CEE released content directly at the following links: