Federal Tax Credit

Federal Tax Credits

Important Information regarding the Inflation Reduction Act of 2022 can be found here.

The Consolidated Appropriations Act of 2021 (Inflation Reduction Act of 2022, retroactively extended the existing 25C tax credit to January 1, 2022 through December 31, 2022)

The U.S. Internal Revenue Service (IRS) is now providing Consumers with a tax credit on high-efficiency heating and cooling equipment. The Ruud^® Air Conditioning Division of Rheem Sales Company, Inc. certifies that the models listed here (if placed in service after December 31, 2021 and before January 1, 2023 in a homeowner’s primary residence) meet the criteria of “Qualified Energy Property” as set forth by Section 25C of the Internal Revenue Code. The maximum amount an eligible homeowner may receive in federal tax credits for purchasing and installing qualifying products, whether those purchases are in the form of upgraded windows, insulation, HVAC equipment or other eligible improvements, is 10% of the installed cost, up to $500.

NONBUSINESS ENERGY PROPERTY CREDIT

The U.S. Internal Revenue Service (IRS) is also providing Consumers with a tax credit on high-efficiency water heating equipment. The Ruud^® Water Heating Division of Rheem Manufacturing Company certifies that the water heating models listed here meet the criteria for the credit of $300 for ENERGY STAR^® certified gas water heaters with UEF>=0.82 or Hybrid Heat Pump Water Heater with UEF>=2.2.

Note: State, Local and Utility rebates may still be available in your respective markets for residential energy products. Please visit the “Rebate Center” for a list of energy efficiency tax credits by State.

Here’s what you need to know about these tax credits:

What equipment qualifies for the credits?

High-efficiency water heaters, furnaces, boilers, heat pumps, central air conditioners, building insulation, windows, roofs, biomass stoves, and circulating fans used in qualifying gas furnaces. Please see the chart below, which details the qualifying Ruud equipment.

When do these tax credits expire?

As part of the Inflation Reduction Act (IFA) of 2022, the residential tax credits for eligible products most recently detailed under the Consolidated Appropriations Act of 2021, are now retroactive and have been extended  to January 1, 2022 through December 31, 2022. 

What’s the maximum amount that a homeowner can receive in tax credits?

The maximum amount an eligible homeowner may receive in tax credits for improvements is $500. If you have already claimed credits of $500 or more from improvements in an earlier year, you are ineligible to claim new credits.

Can these tax credits be applied to energy-efficient equipment purchased for a second home?

In order for purchases of high-efficiency heating, cooling and water heating equipment to be eligible for this tax credit, the equipment must be installed in an existing primary residence that is owned and used by the taxpayer. New construction and rentals do not apply.

What do I need to do to take advantage of these tax credits?

You should obtain a Manufacturer’s Certification Statement, which is a signed statement from the manufacturer certifying that the product or component qualifies for the tax credit. Taxpayers must keep a copy of the certification statement for their records, but do not have to submit a copy with their tax return.
The Ruud Heating & Cooling Federal Tax Credit Manufacturer’s Certification Form can be downloaded here.
The Ruud^® Water Heating Division Federal Tax Credit Manufacturer’s Certification Form can be downloaded here.
You can also download the proper IRS form here.

Where can I find out more information about these tax credits?

ENERGY STAR has more information here for tax credits that apply retroactively 1/1/2022 through 12/31/2022. 

Note: State, Local and Utility rebates may still be available in your respective markets for residential energy products. Please visit the “Rebate Center” for a list of energy efficiency tax credits by zip code.

If you cannot find the appropriate tax form listed on this website, please contact us here. Please be sure to include your indoor product model, outdoor product model number and coil model number as appropriate.