FAQs on What’s New in 2023
The U.S. government has passed legislation under the Inflation Reduction Act of 2022. To help you understand the changes, we've gathered all the key info you should know.
What is the Inflation Reduction Act?
The Inflation Reduction Act of 2022 (IRA) is a broad piece of federal government legislation that encourages homeowners to work toward U.S. electrification and greenhouse gas reduction goals. It covers many industries and carries a wide range of government-backed programs and incentives. Those include potential tax credits for HVAC equipment installations and upgrades that can save you serious money!
What is the Energy Efficiency Home Improvement Credit (25C)?
The Energy Efficiency Home Improvement Credit (25C) is a dollar-for-dollar offset on the amount of taxes you owe, up to a set amount. This tax credit is available to homeowners who purchase high-efficiency heating and cooling equipment, including air conditioners, heat pumps, furnaces and packaged units.
Which systems qualify for the tax credit?
The Energy Efficiency Home Improvement Tax Credit (25C) applies to a broad range of equipment. Below is a list of all the 2023 IRA-qualifying equipment in our lineup.
2023 Qualifying equipment with system matches |
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| Heat Pumps | Air Conditioners | Packaged Units | Gas Furnaces |
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Tax Credits Available Up To |
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| $2,000 | $600 EACH Total limit of $1,200 annually per household (unless a heat pump is used, then the annual cap may be increased) | ||
Are there income eligibility requirements for tax credits?
Energy Efficient Home Improvement Tax Credits (25C) have no income eligibility requirements. The program is available to taxpayers through December 31, 2032.
Do I qualify for the tax credits?
There are some limitations for homeowners applying for tax credits on their HVAC installation or upgrade. We always recommend that you consult an experienced tax professional before applying for tax credits to ensure your chosen equipment match qualifies.2
Local energy incentives
Many high-efficiency heating and cooling products qualify for local utility and energy incentives and rebates. Your Allied professional has the latest energy incentives information available at their fingertips, so be sure to ask them for details on how to save. Additional resources such as energy.gov allow you to search for federal, state, and local incentives for your energy-efficient home improvements. Don't miss out on money-saving opportunities.
2024 Tax Certificates
2023 Tax Certificates
- "Heat pumps" includes split ducted, split non-ducted, and packaged heat pumps
- In some cases, ENERGY STAR® qualification is dependent on the full system match. Visit the AHRI Directory for full system matches
Allied Air Enterprises (“Allied”) is not acting in the capacity of a legal or tax advisor and does not make any representation, warranty, guarantee or other assurance as to whether a particular match-up qualifies or is eligible for a tax credit or rebate. This document has been prepared for informational purposes only and is not intended to provide, and should not be relied on for, tax or legal advice. The IRS, DOE, and state energy offices are responsible for the implementation and administration of tax certificates/rebates. There are important requirements and limitations for the homeowner to qualify for tax credits/rebates. Moreover, the laws are subject to change. As a result, Allied highly recommends that you and your customers consult with a tax advisor or attorney regarding a homeowner’s qualification for a tax credit/rebate in their particular circumstance and verify and review the applicable laws and regulations. Allied expressly disclaims all liability for damages of any kind arising out of a homeowner’s claim for a tax credit/rebate. This information is subject to change without notice.