How to Qualify for the Federal Energy Efficient Home Improvement Tax Credit
Homeowners upgrading to energy-efficient HVAC systems, including heat pumps, may qualify for the Federal Energy Efficient Home Improvement Tax Credit (EEHIC). To successfully claim this incentive, it’s essential to verify product eligibility, understand manufacturer requirements, and file the correct IRS documentation.
Verify Eligibility Using the DOE Product Lookup Tool
The U.S. Department of Energy (DOE) Product Lookup Tool is the official resource for confirming whether a specific HVAC product qualifies for federal tax credits. By entering the manufacturer, model number, and installation year, homeowners can confirm if their heat pump or other energy-efficient equipment meets the required efficiency standards tied to the tax credit.
This tool covers qualifying products such as heat pumps, central air conditioners, furnaces, boilers, and water heaters, making it a critical first step before claiming any federal energy efficiency incentive.
Understanding the Energy Efficient Home Improvement Credit
The Energy Efficient Home Improvement Credit allows eligible homeowners to claim a percentage of the cost of qualified energy-saving improvements on their federal tax return using IRS Form 5695. Eligible upgrades may include heat pump installations, HVAC system replacements, insulation, windows, doors, and water heaters, provided they meet federal efficiency criteria.
To claim the credit, the equipment must be produced by a Qualified Manufacturer that participates in the IRS program.
Manufacturer Codes and Form 5695 Requirements
When filing Form 5695, homeowners must report a Qualified Manufacturer (QM) Code for eligible HVAC equipment, including heat pumps. This 4-character manufacturer code confirms the equipment was produced by a manufacturer approved by the IRS.
For installations completed in 2025, QM Codes are required. Beginning in 2026, some products may also require a Product Identification Number (PIN). Many major HVAC brands share manufacturer codes due to shared manufacturing, so it’s important to use the correct code provided by the manufacturer or installer.
