CEE and the Inflation Reduction Act 25c tax credits

On August 16th, 2022, the Inflation Reduction Act of 2022 was passed, naming CEE tiers as the basis for federal tax credits across several product categories through 2032, including:

  • Electric or gas heat pump water heaters
  • Electric or natural gas heat pumps
  • Central air conditioners
  • Gas, propane, or oil water heaters
  • Gas, propane, or oil furnace boilers

The Act cites products “which meet or exceed the highest efficiency tier (not including any advanced tier)”. The tax credit eligible tier may be Tier 1, 2, or 3, depending on the product category. CEE tiers are explained in more detail on this page.

The  CEE℠ Residential Heating and Cooling Systems Initiative was recently updated, along with the associated CEE Electric HVAC  Specifications; the CEE Natural Gas HVAC Specifications are also covered within this Initiative. The CEE℠ Residential Water Heating Initiative was also recently revised, with updates to the CEE Electric Water Heating Specifications and CEE Natural Gas Water Heating Specifications. All of the aforementioned revisions have effective dates of January 1, 2023.

More information about how CEE works, as well as CEE Initiatives and other resources may be helpful. 

CEE took no action to be named nor to establish the timing of the associated tax credits. The Consortium is working with the Air Conditioning, Heating and Refrigeration Institute (AHRI) to support the identification of CEE qualified products at specified tiers through the CEE Directory, which leverages the AHRI database. Until the database is updated fully, individual manufacturers may be listing products that meet CEE Tiers on their website. 

CEE does not sell or manufacture products, nor do we recommend specific brands or administer rebates. CEE does not provide tax advice and advises consultation with IRS resources and your personal tax preparer to determine eligibility.

Energy Star Information about Tax Credits 

Residential Energy Credits

What the IRA means for you

For more information about CEE Tiers or CEE Initiatives, please email programservices@cee1.org  

About CEE
CEE is an award-winning consortium of efficiency program administrators from the United States and Canada. Members work to unify program approaches across jurisdictions to increase the success of efficiency in markets. By joining forces at CEE, individual electric and gas efficiency programs are able to partner not only with each other, but also with other industries, trade associations, and government agencies. Working together, administrators leverage the effect of their ratepayer funding, exchange information on successful practices and, by doing so, achieve greater energy efficiency for the public good.

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