Carrier Great Lakes understands how most homeowners need to balance comfort, energy consumption, and the initial cost of equipment. That’s why we offer a wide variety of products that help check all these needs. Now, with the Inflation Reduction Act of 2022, many of our products qualify for 25C tax credits, making it more affordable for you to get into a higher efficiency system. Let’s take a look at the 25C tax credits and current Carrier systems that qualify.

25C TAX CREDIT

The Inflation Reduction Act of 2022 provides federal tax credits and deductions that empower Americans to make homes and buildings more energy-efficient to help reduce energy costs while reducing demand as we transition to cleaner energy sources. Under this act, tax section 25C allows for federal income tax credits for energy efficiency home improvements available through 2032.

A broad selection of ENERGY STAR® certified equipment is eligible for the tax credits. Taking advantage of tax credits, along with any available rebates, is a good way to help make the transition to a clean energy future more affordable.

What are the 25C tax credit amounts?

For installations of eligible equipment occurring after January 1, 2023, homeowners may receive a nonrefundable credit against their taxes for an amount equal to the sum of: 

• 30% of the total installation costs of eligible energy-efficient equipment up to $1,200 per taxable year. 
• The credit for eligible heat pump installation costs is capped at $2,000; these credits are considered separate from the $1,200 annual limit. 
• This means, the installation of an approved heat pump along with other qualifying energy-efficient equipment expenditures is capped at a total of $3,200 per taxable year. 

25C is a nonrefundable tax credit. Homeowners are advised to consult with a tax professional for further details.

To qualify for the 25C tax credits, eligible equipment must meet or exceed the highest efficiency tier established by the Consortium for Energy Efficiency, excluding any CEE defined Advanced Tier. Carrier offers a comprehensive family of high-efficient eligible products!