Carrier Inflation Reduction Act

The Inflation Reduction Act of 2022 and 25C Tax Credits Incentives that reward homeowners and builders for installing high-efficiency HVAC equipment

Taking Advantage of Tax Credits Carrier understands how most homeowners need to balance comfort, energy consumption and the initial cost of the equipment.

That’s why we offer a wide variety of products that help meet all these needs. And now, with the Inflation Reduction Act of 2022, many of our products qualify for 25C tax credits, making it more affordable for homeowners to get into a higher efficiency system.

WHAT IS THE INFLATION REDUCTION ACT OF 2022?

The U.S. Government passed the Inflation Reduction Act of 2022, a piece of legislation covering a broad spectrum of initiatives, including health care costs, clean energy, and the federal deficit among others.1 Of particular interest to homeowners, home builders and HVAC contractors, this act includes a number of incentives for the installation of high-efficiency home heating and cooling products.

The Inflation Reduction Act of 2022 both extends and expands existing 25C and 25D tax credits to homeowners and 45L tax credits to home builders for installing applicable high-efficiency HVAC equipment. Each of these credits has specific efficiency requirements to qualify as outlined in the chart below.2

Tax Section

2023-2032 Tax Credit Details

Tax Section

2023-2034 Tax Credit Details

25D

Geothermal Heat Pumps - 30% for systems placed in service during calendar year 2022 through calendar year 2032 - 26% for systems placed in service during calendar year 2033 - 22% for systems placed in service during calendar year 2034

30% of cost up to $1,200 ($2,000 for Heat Pumps) Products must align with CEE’s highest tier (excluding the advanced tier) Air Conditioners - Up to $600 tax credit 25C

Heat Pumps - Up to $2,000 tax credit Gas Furnaces and Boilers - Up to $600 tax credit Advanced Main Air Circulating Fan - Must use no more than 2% of furnace’s total energy, up to $50 tax credit

Tax Section

2023-2032 Tax Credit Details

45L

Single Family - Single Family New homes $2,500 tax credit - Zero-energy Single Family New homes $5,000 tax credit Multifamily - Multifamily Units $500 tax credit - Zero-energy Multifamily Units $1,000 tax credit

WHAT IS THE 25C TAX CREDIT? Under the Inflation Reduction Act of 2022, 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 these 25C 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.

1 2

https://bidenwhitehouse.archives.gov/briefing-room/statements-releases/2022/08/15/by-the-numbers-the-inflation-reduction-act/ https://www.energystar.gov/about/federal-tax-credits

CURRENT 2025 PRODUCT ELIGIBLE FOR 25C TAX CREDITS Here’s a look at qualifying products that meet the latest efficiency requirements for installations on or after January 1, 2025:

Criteria1

25C Tax Credit

Product

Offering

Path

Path A

Up to $2,000

HPs

SEER2 EER2 HSPF2 (≥) (≥) (≥)

16.0

9.8

8.5

COP @ 5° F (≥)

1.75

Capacity Ratio (5° F / 47° F)

Other Requirements

≥60%

27VNA0 27VNA1 27VNA3 37MPRAQ 37MAHAQ 37MBHAQ 37MARAQ 37MBRAQ 37MGHAQ 37MGRAQ 37MUHAQ 37MHRAQ 37MURAQ

Split Ducted & Ductless Heat Pumps

Path B

16.0

11.0

8.0

1.75

≥45%

27VNA0 27VNA1 27VNA3 27TPA8 GH8TAN5 37MPRAQ 37MAHAQ 37MBHAQ 37MARAQ 37MBRAQ 37MGHAQ 37MGRAQ 37MUHAQ 37MHRAQ 37MURAQ

15.2

10.0

7.2

1.75

≥45%

48NR2 50NR2

CEE

Small Packaged Heat Pumps

Up to $600

ACs

Split Ducted & Ductless ACs

17.0

12.0

26VNA1 26TPA8 26SPA6 26SCA5 37MHRAC

Small Pkgd ACs

16.0

11.5

48NG3

GFs Up to $600

Gas-Fired Forced Hot Air

Note: Eligible models, as listed above, are qualified and dependent upon specific system combinations.

To view certified combinations, visit https://www.ahrinet.org/certification/cee-directory.

2 5T only 3 4T only 1

Eligible models as of 1/1/2025

≥ 97% AFUE

59MN7 59TN7 59TP7 59SP6 59SC6

WHAT PRODUCT COMBINATIONS ARE 25C TAX CREDIT ELIGIBLE? 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. As seen in the charts below, Carrier offers a comprehensive family of high-efficient eligible products that meet the new 2025 CEE requirements: Ducted Heat Pumps (Path A)

Ductless Heat Pumps (Path A)

Tier 1 - Path A Criteria: ≥ 16.0 SEER2, 9.8 EER2, 8.5 HSPF2, 1.75 COP at 5° F, and 60% Capacity Ratio at 5° F / 47° F

Tier 1 - Path A Criteria: ≥ 16.0 SEER2, 9.8 EER2, 8.5 HSPF2, 1.75 COP at 5° F, and 60% Capacity Ratio at 5° F / 47° F

Product Tier Infinity® System

Models

Furnace

Fan Coil / AHU

27VNA0

2T, 3T, 4T

All

27VNA1

All

All

27VNA3

All

All 18k, 24k, 30k, 36k, 48k, 60k

Performance™ 37MUHAQ Series Comfort™ Series

18k, 24k, 30k, 36k, 48k

37MURAQ

Ducted Heat Pumps (Path B) Tier 1 - Path B Criteria: ≥ 16.0 SEER2, 11.0 EER2, 8.0 HSPF2, 1.75 COP at 5° F, and 45% Capacity Ratio at 5° F / 47° F Product Tier Infinity System Performance Series

Models 27VNA0 27VNA1 27VNA3

Furnace 2T All All

Fan Coil / AHU 4T All All

27TPA8

All

3T, 4T, 5T 18k, 24k, 30k, 36k, 48k, 60k 18k, 24k

37MUHAQ

Comfort Series 37MURAQ

Product Tier

Models

Tier 1 - Criteria: ≥ 17.0 SEER2 and 12.0 EER2 Product Tier

Models

Furnace

Fan Coil / AHU

Infinity System

26VNA1

2T

Performance Series

26TPA8

2T, 3T, 4T

2T, 4T

26SPA6

1.5T, 2T

2T

Comfort Series

26SCA5

1.5T, 2T

2T

Infinity System

Performance Series Comfort Series

Product Tier

Models

Performance Series

48NR***

Type Packaged Hybrid Heat® System

50NR***

Packaged Heat Pump

Path A = Heating dominated applications and whole home electrification scenarios.

Path B = Cooling dominated applications and dual-fuel heating systems.

Console** Ducted / AHU – 9k, 12k, 18k, 24k 36k – 9k, 12k, 18k, 24k 36k –

– 6k, 9k, 12k, 18k, 24k, 33k 36k, 48k 18k, 24k, 30k, 36k, 48k, 55k 9k, 12k, 18k, 24k, 30k 36k, 48k, 58k 18k, 24k, 30k, 36k, 48k, 55k

–

–

Ductless Heat Pumps (Path B) Tier 1 - Path B Criteria: ≥ 16.0 SEER2, 11.0 EER2, 8.0 HSPF2, 1.75 COP at 5° F, and 45% Capacity Ratio at 5° F / 47° F Product Tier

Models

Highwall

Cassette*

37MPRAQ

6k, 9k, 12k, 18k

–

–

–

37MAHAQ

6k, 9k, 12k, 18k, 24k, 33k

6k, 9k, 12k, 18k, 24k

9k, 12k, 18k, 24k

6k, 9k, 12k, 18k, 24k, 33k

37MBHAQ

Console** Ducted / AHU

–

36k

–

36k

9k, 12k, 18k, 24k –

18k, 24k, 30k, 36k, 48k, 55k 9k, 12k, 18k, 24k, 30k – 18k, 24k, 30k, 36k, 48k

–

–

18k, 24k, 30k, 37MGHAQ 36k, 48k, 55k 12k^, 6k, 9k, 12k, 6k, 9k, 12k, 37MARAQ 18k, 24k, 30k 18k, 24k Performance 37MBRAQ – – Series 18k, 24k, 30k, 37MGRAQ 36k, 48k 9k^, 9k, – Comfort Series 37MHRAQ 18k, 39k

Packaged Heat Pumps Tier 1 - ≥ 15.2 SEER2, 10.0 EER2, 7.2 HSPF2, 1.75 COP at 5° F, and 45% Capacity Ratio at 5° F / 47° F

Cassette*

6k, 9k, 12k, 18k – 6k, 9k, 12k, 6k, 9k, 12k, 37MAHAQ 18k, 24k, 33k 18k, 24k 37MBHAQ – 36k, 48k 18k, 24k, 30k, 37MGHAQ – 36k, 48k, 55k ^ 12k , 6k, 9k, 12k, 6k, 9k, 12k, 37MARAQ 18k, 24k, 30k 18k, 24k 37MBRAQ – – 18k, 24k, 30k, 37MGRAQ – 36k, 48k, 55k ^ 9k , 9k, 12k, – 37MHRAQ 18k, 30k

Infinity System

Ducted Air Conditioners

Highwall

37MPRAQ

Ductless Air Conditioner Tier 1 - Criteria: ≥ 17.0 SEER2 and 12.0 EER2 Product Tier Comfort Series

Models

Highwall

Cassette*

37MHRAC

12k^, 9k, 12k

–

Console** Ducted / AHU –

–

Packaged Air Conditioner Tier 1 - ≥ 16.0 SEER2 and 11.5 EER2 Product Tier Performance Series

Models

Type

48NG****

Packaged Air Conditioner with Gas Heat System

* Includes 1-way & 4-Way ** Floor & Underceiling *** 5T only **** 4T only ^115V

NOTE: B e sure to remind your customers that they must consult with a qualified tax professional to determine how these credits may apply in their circumstance.

Manufacturer reserves the right to discontinue, or change at any time, specifications or designs without notice or without incurring obligations.

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