2025–2032 • Energy Efficient Home Improvement Credit (25C)
Get Paid to Go Green with MRCOOL: Up to $2,000 in Federal Tax Credits
Upgrade with MRCOOL and save with 30% federal tax credits—up to $2,000 for eligible heat pumps and up to $600 for qualifying ACs & furnaces. Claimed as a tax credit on your federal return.
How the 25C Tax Credit Works
The Inflation Reduction Act expands the Energy Efficient Home Improvement Credit (25C). When you purchase qualifying MRCOOL equipment and required components, you can claim 30% of your installed cost up to the category cap—$2,000 for heat pumps; $600 for central ACs and furnaces—every year through 2032.
Unlike rebates, this is a federal tax credit you take when you file your return. Equipment must meet minimum efficiency ratings and, for split systems, must be paired with compatible indoor equipment to meet the standard.
What MRCOOL Products Qualify?
Eligible equipment must meet or exceed the highest applicable CEE tier (excluding advanced tiers). In practice, that aligns with ENERGY STAR®-equivalent performance. Need help confirming a model? We’ll validate your pairing before you buy.
Calculate Your 2025 Tax Credit
Scenario | Cost | Math | Credit |
---|---|---|---|
South U.S. – Mini-Split | $1,000 | 30% × $1,000 = $300 (under $600 cap) | $300 |
North U.S. – Universal Heat Pump | $3,000 | 30% × $3,000 = $900 (under $2,000 cap) | $900 |
Any Region – Central Heat Pump | $7,000 | 30% × $7,000 = $2,100 → capped at $2,000 | $2,000 |
Installation and required components (e.g., line sets, coils, thermostats) can be included in the total project cost.
How to Claim the Credit
- Buy and install qualifying MRCOOL equipment.
- Keep invoices and model documentation.
- File IRS Form 5695 with your federal tax return.
- Retain records for your files.
Questions about your taxes? Consult a licensed tax professional.
Minimum Efficiency Ratings (2025 Reference)
Air Conditioners (≤ $600 credit)
- Split: ≥ 16.0 SEER2 and ≥ 12.0 EER2
- Packaged: ≥ 15.2 SEER2 and ≥ 11.5 EER2
Furnaces (≤ $600 credit)
- Natural Gas Forced-Air: ≥ 97% AFUE
Heat Pumps (≤ $2,000 credit)
Northern states: Typical minimums include ≥ 15.2 SEER2, ≥ 10.0 EER2, ≥ 8.1 HSPF2, plus low-temp performance requirements.
Southern states: Typical minimums include ≥ 15.2 SEER2, ≥ 11.7 EER2, ≥ 7.8 HSPF2.
For ductless mini-splits, look for ≥ 16.0 SEER2 and qualifying EER2/HSPF2 thresholds. We’ll confirm eligible MRCOOL models for your region.
Frequently Asked Questions
How do I claim my tax credit?
Who is eligible?
What counts as principal residence?
Can I include installation?
Do split systems need specific indoor matches?
Can I combine with the High-Efficiency Electric Home Rebate Program?
Shop Qualifying MRCOOL Systems
MRCOOL DIY Direct is the USA’s most trusted MRCOOL dealer. We verify eligibility, confirm proper pairings, and ship fast nationwide.