The Inflation Reduction Act of 2022 includes tax credits that reward homeowners for purchasing certain high-efficiency HVAC equipment.
Our highest-efficiency heating and cooling systems offer several homeowner benefits. From energy savings, to comfort-enhancing innovations like Greenspeed® intelligence, to longer component-specific warranties, there's a lot to like. And now there’s another potential benefit, thanks to Uncle Sam: the Inflation Reduction Act of 2022.
To help reduce the effects of inflation, the U.S. Government has passed the Inflation Reduction Act of 2022. Of particular interest to homeowners, this act includes a number of tax credits for the installation of ENERGY STAR® certified home heating and cooling products. These include:
| 25C Tax Credit | Product | Offering | Region | SEER2 | EER2 | HSPF2 | COP @ 5F | Capacity Ratio (17F/47F) | Capacity Ratio (5F/47F) | Other Requirements |
|---|---|---|---|---|---|---|---|---|---|---|
| Up to $2,000 | Heat Pumps | Split Ducted Heat Pump | North | ≥15.2 | ≥10 | ≥8.1 | 1.75 | 58% | 70% | Choice of capacity ratio |
| South | ≥15.2 | ≥11.7 | ≥7.8 | - | - | - | - | |||
| Non-Ducted Heat Pump | North | ≥16 | ≥9 | ≥9.5 | 1.75 | 58% | 70% | Choice of capacity ratio | ||
| South | ≥16 | ≥12 | ≥9 | - | - | - | - | |||
| Packaged Heat Pump | North | ≥15.2 | ≥10 | ≥8.1 | 1.75 | 58% | 70% | Choice of capacity ratio | ||
| South | ≥15.2 | ≥10.6 | ≥7.2 | - | - | - | - | |||
| Up to $600 | Air Conditioners | Split AC | Nationally | ≥16 | ≥12 | - | - | - | - | - |
| Packaged AC | Nationally | ≥15.2 | ≥11.5 | - | - | - | - | - | ||
| Up to $600 | Furnaces | Gas-Fired Forced Hot Air | Nationally | - | - | - | - | - | - | ≥97% AFUE |
Subject to change: While the 2023 benefits of Section 25C are known for the 2023 tax year and beyond, the criteria to qualify for credit(s) are not yet finalized by the IRS and the above is subject to change based on whether the IRS will adopt the full CEE Criteria.
Provides a tax credit to homeowners equal to 30% of installation costs for ENERGY STAR® geothermal heat pumps until 2032. That percentage drops to 26% in 2033 and 22% in 2034.
Provides income-depending rebates to eligible homeowners including:
Carrier’s EcoHome program offers 0% same as cash financing available so you can make monthly payments on high efficiency equipment YOU want.1 Ask about bundling opportunities with factory rebates like Cool Cash, state and local government rebates, and the Inflation Reduction Act. Call your local Carrier Factory Authorized dealer today!
In addition to Federal Tax credits, local utility rebates may be available on some products to help reduce the overall expense of installing a new heating and cooling system. Search for local rebates in your area by clicking on the link below.
1 Subject to credit approval. Ask for details
