Take advantage of 25C Tax Credit opportunities for qualifying energy-efficient indoor comfort improvements. Act now, as the § 25C Energy Efficient Home Improvement Credit will no longer be available for equipment placed into service after December 31, 2025.
This credit, outlined in Section 25C of the Internal Revenue Code (IRC), offers a financial incentive to homeowners for making qualifying improvements, potentially providing a tax credit for a portion of the cost of qualifying energy-efficient HVAC systems.
Eligible HVAC Equipment
Heat Pumps
Individuals purchasing qualifying air-source heat pump split systems or packaged systems may be eligible for a non-refundable tax credit of up to $2000. Equipment must meet or exceed the Consortium for Energy Efficiency (CEE) highest efficiency tier (excluding advanced tiers) in effect at the beginning of the calendar year the equipment is placed into service.
2025 CEE Split ASHP Specifications
| CEE Level | SEER2 | EER2 | HSPF2 | COP AT 5°F | Capacity Ratio |
|---|---|---|---|---|---|
| CEE Tier 1 (Path A) | ≥ 16.0 | ≥ 9.8 | ≥ 8.5 | ≥ 1.75 | ≥ 60% AT 5°F/47°F |
| CEE Tier 1 (Path B) | ≥ 16.0 | ≥ 11.0 | ≥ 8.0 | ≥ 1.75 | ≥ 45% AT 5°F/47°F |
2025 CEE Packaged ASHP Specifications
| CEE Level | SEER2 | EER2 | HSPF2 | COP AT 5°F* | Capacity Ratio |
|---|---|---|---|---|---|
| CEE Tier 1 | ≥ 15.0 | ≥ 10.0 | ≥ 7.2 | ≥ 1.75 | ≥ 45% AT 5°F/47°F |
Central Air Conditioners
Qualifying packaged and split central air conditioning systems may be eligible for a non-refundable tax credit of up to $600. Equipment must meet or exceed the CEE highest efficiency tier (excluding advanced tiers).
2025 CEE Split CAC Specifications
| Level | SEER2 | EER2 |
|---|---|---|
| CEE Tier 1 | ≥ 17.0 | ≥ 12.0 |
2025 CEE Packaged CAC Specifications
| CEE Level | SEER2 | EER2 |
|---|---|---|
| CEE Tier 1 | ≥ 16.0 | ≥ 11.5 |
Natural Gas Furnaces
Qualifying gas-fired forced air furnaces may be eligible for a non-refundable tax credit of up to $600. Equipment must meet or exceed the CEE highest efficiency tier (excluding advanced tiers).
2025 CEE AFUE Specifications
| CEE Level | AFUE* |
|---|---|
| CEE Tier 3 | ≥ 97% |
Finding Tax Credit-Eligible Systems
- Visit the AHRI Directory of Certified Product Performance webpage and click on your corresponding Product Function.
- Enter the brand name (if applicable), model number of your equipment into the Search bar, and click SEARCH.
- Locate your system's model number in the search results and click on the AHRI Ref # link.
- On the system's detail page, look for the button labeled "Download Certificate."
- Click DOWNLOAD CERTIFICATE to download the AHRI certificate. 25C tax credit-eligible equipment will display the text "Potential Eligibility for IRA Tax Credit*" in the top right-hand corner. Save or print this for your records.
These tax credits apply to Residential Energy Property Expenditures. Meeting the highest numeric CEE tier (excluding the advanced tier) serves as a criterion for eligibility.
Important Information
PIN Requirement for 25C: For property placed in service after 2025, taxpayers must include the Qualified Manufacturer's (QM) PIN on their tax return (Form 5695) to claim the credit. The QM PIN for qualifying 25C Amana branded equipment is 17Q6.
Disclaimer: Daikin Comfort Technologies Manufacturing, Inc. does not offer tax advice. This information is for discussion purposes only and is provided as a generic guideline. Consumers should consult with a tax professional for personalized advice.
