Promotional graphic for 2025 HVAC tax credits from MRCOOL DIY Direct, showing savings up to $2,000 for heat pumps and $600 for ACs and furnaces, with MRCOOL DIY Direct logo on a white background.

Get Paid to Go Green: 2025 HVAC Tax Credits for MRCOOL (Up to $2,000)

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.

All U.S. households Primary residence only Cannot combine with HEEHRA Install costs included

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

  1. Buy and install qualifying MRCOOL equipment.
  2. Keep invoices and model documentation.
  3. File IRS Form 5695 with your federal tax return.
  4. 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?
Complete IRS Form 5695 and include it with your federal return. Keep your receipts and model documentation. Installation and required components may be included.
Who is eligible?
Homeowners (and some renters for eligible expenditures) on a primary U.S. residence from 2023–2032.
What counts as principal residence?
Your main U.S. home where you live most of the time. Temporary absences don’t change that.
Can I include installation?
Yes—project cost includes qualified equipment, required components, and professional installation, up to the category cap.
Do split systems need specific indoor matches?
Yes. The outdoor unit must be paired with an approved indoor unit/coil to meet efficiency. We’ll help you choose the right pairing.
Can I combine with the High-Efficiency Electric Home Rebate Program?
No. You can’t combine those, but separate state/utility rebates may be available.

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.

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