In 2022, the U.S. Congress passed the Inflation Reduction Act. This bill includes an extension and amendment of the Nonbusiness Energy Property Credit known as Section 25C.
This tax credit was extended for 10 years through 2032 and increased from 10% to 30% of installation costs with capped dollar amounts dependent upon the type of system installed.
After January 1, 2023, homeowners may receive a nonrefundable tax credit for 30% of installation costs of eligible HVAC system installations in existing homes up to:
- Up to $600 for qualifying air conditioners
- Up to $600 for qualifying gas furnaces
- Up to $2,000 for qualifying heat pump systems
Systems must fall into the highest efficiency tier (excluding advanced tiers) set by the Consortium for Energy Efficiency.
CEE has set two regions, North and South, and the qualifying criterion for each region differs. Please refer to the map and qualifications below
Heat Pump - South Region
CEE Split Ducted ASHP Specifications - South
| Level | SEER2 | EER2 | HSPF2 | Connectivity |
|---|---|---|---|---|
| CEE Tier 1 | ≥15.2 | ≥11.7 | ≥7.8 | N/A |
| CEE Advanced Tier | ≥17.0 | ≥12.0 | ≥8.0 | CEE Demand Response Criteria Level 2 |
CEE Non-Ducted ASHP Specification - South
| Level | SEER2 | EER2 | HSPF2 | Connectivity |
|---|---|---|---|---|
| CEE Tier 1 | ≥15.2 | ≥11.7 | ≥7.8 | N/A |
| CEE Tier 2 | ≥16.0 | ≥12.0 | ≥9.0 | N/A |
| CEE Advanced Tier | ≥17.0 | ≥13.0 | ≥9.0 | CEE Demand Response Criteria Level 2 |
Heat Pump - North Region
CEE Split Ducted ASHP Specifications - North and Canada
| Level | SEER2 | EER2 | HSPF2 | COP at 5°F* | Capacity Ratio | Connectivity |
|---|---|---|---|---|---|---|
| CEE Tier 1 | ≥15.2 | ≥10.0 | ≥8.1 | ≥1.75 | ≥58% at 17°F/ 47°F OR ≥70% at 5°F/47°F | N/A |
| CEE Advanced Tier** | ≥17.0 | ≥N/A | ≥8.1 | ≥1.75 | ≥58% at 17°F/ 47°F OR ≥70% at 5°F/47°F | CEE Demand Response Criteria Level 2 |
CEE Non-Ducted ASHP Specifications - North and Canada
| Level | SEER2 | EER2 | HSPF2 | COP at 5°F* | Capacity Ratio | Connectivity |
|---|---|---|---|---|---|---|
| CEE Tier 1 | ≥15.2 | ≥9.0 | ≥8.5 | ≥1.75 | ≥58% at 17°F/ 47°F OR ≥70% at 5°F/47°F | N/A |
| CEE Tier 2 | ≥16.0 | ≥9.0 | ≥9.5 | ≥1.75 | ≥58% at 17°F/ 47°F OR ≥70% at 5°F/47°F | N/A |
| CEE Advanced Tier** | ≥17.0 | ≥N/A | ≥10.0 | ≥1.75 | ≥58% at 17°F/ 47°F OR ≥70% at 5°F/47°F | CEE Demand Response Criteria Level 2 |
Central Air Conditioners – North and South
CEE Split CAC Specification
| Level | SEER2 | EER2 | Connectivity |
|---|---|---|---|
| CEE Tier 1 | ≥15.2 | ≥12.0 | N/A |
| CEE Tier 2 | ≥16.0 | ≥12.0 | N/A |
| CEE Advanced Tier | ≥16.0 | ≥12.0 | CEE Demand Response Criteria Level 2 |
For the full air conditioner and heat pump qualifications, please download the CEE fact sheet here: CEE Electric Equipment Specifications
For the full gas furnace qualifications, please download the CEE fact sheet here: CEE Natural Gas Equipment Specifications
To find qualifying systems, you can visit the AHRI Directory at https://www.ahridirectory.org/ or you can go to https://www.greecomfort.com/rebates for a list of Gree products that qualify for the tax credit plus any additional rebates in your area. Please be aware the AHRI Directory is being updated to include the full list of CEE specifications. This is expected to be completed at the end of February 2023.
Be aware the IRS has not finalized the criteria and filing process for the tax credit. The IRS may adopt the CEE specifications in part or in full, so system qualifications are subject to change. The IRS is expected to release more guidance at the end of Q1 2023.
Please consult your tax professional for further information before making a purchase.