Due to recent changes in U.S. federal law, the §25C Energy Efficient Home Improvement Credit will no longer be available for equipment placed in service after December 31, 2025.
Homeowners planning to install qualifying energy-efficient HVAC systems are encouraged to act promptly to ensure eligibility before the program expires.
What Is the 25C Energy Efficient Home Improvement Credit?
The Section 25C tax credit applies to certain Residential Energy Property Expenditures under the Federal Energy Efficiency Home Improvement Credit, including eligible:
- Heat Pumps
- Central Air Conditioners
- Natural Gas Furnaces
To qualify, equipment must meet applicable energy efficiency requirements, including achieving the highest numeric CEE efficiency tier (excluding the Advanced Tier) in effect at the beginning of the year in which the system is installed.
How to Verify Whether Your System Is Eligible
Homeowners and contractors can verify product eligibility through the AHRI Directory of Certified Product Performance.
Step 1: Search the AHRI Directory
Select the appropriate Product Function, then enter the brand name and model number of the equipment. If applicable, include both indoor and outdoor unit model numbers.
For ductless systems:
- Click “Show Additional Filters”
- Select “Yes” for “Is Mini-Multi Split”
Step 2: Download the AHRI Certificate
- Locate your system in the search results and click the AHRI Ref #
- On the system detail page, click “Download Certificate”
- Equipment that may qualify for the 25C tax credit will display
“Potential Eligibility for IRA Tax Credit”* in the upper-right corner of the certificate
We recommend saving or printing this certificate for your tax records.
Qualified Manufacturer (QM) Code Requirement
For equipment placed in service after December 31, 2024 and before January 1, 2026, taxpayers claiming the §25C tax credit must:
- Install qualifying equipment
- Ensure the equipment is produced by a Qualified Manufacturer (QM)
- Include the Qualified Manufacturer Code (QM Code) on their 2025 federal tax return, using IRS Form 5695 – Residential Energy Credits
TOSOT Qualified Manufacturer Code
For qualifying TOSOT mini-split ACs, the Qualified Manufacturer Code (QM Code) is: P9H1
This code must be entered on the applicable tax form when claiming the 25C credit.
If you have any questions, feel free to reach us at support@tosotdirect.com
