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. 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.
Product lists that meet CEE’s Highest Tier (not Advanced) as cited in the Inflation Reduction Act of 2022 (IRA) with regard to 25C tax credits are available at www.ceedirectory.org. CEE has been working in collaboration with the US Department of Energy, the Air-Conditioning, Heating, and Refrigeration Institute (AHRI), and individual manufacturers to create a validated means to represent those models that are likely (pending IRS guidance) to meet the IRA criteria for 25C tax credit in the following residential product categories:
• Air Source Heat Pumps
• Central Air Conditioners
• Heat Pump Water Heaters
• Natural Gas Water Heaters
• Natural Gas Furnaces and Boilers
The lists were compiled by the U.S. Department of Energy to identify product models that meet the criteria for the CEE Tiers specified in IRA. They have been provided to CEE for the purpose of communicating eligibility for these CEE Tiers. The data provided are the representations submitted to DOE by manufacturers and their third-party representatives. DOE makes no representations or warranties regarding the accuracy of the data. Questions regarding the completeness or accuracy of these lists should be directed to appliancestandardsquestions@ee.doe.gov.
CEE will continue to coordinate with DOE and AHRI to support this resource and provide the most accurate and accessible list of products with performance cited as required for 25C tax credit.
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
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.