AHRI, ACCA respond to IRS’s 25C tax credit proposal

AHRI and ACCA have weighed in on the IRS’s proposed PIN requirement for homeowners to claim the 25C tax credit.

Background: On December 29th, the IRS proposed that starting January 1, 2025, homeowners could only claim the 25C tax credit if 1) the item is produced by a qualified manufacturer, and 2) the homeowner includes the qualified PIN of the item on their tax return.

Why it matters: If the proposal moves forward, contractors will need to clarify the requirement when selling to homeowners.

What’s happening: AHRI suggested using its Directory of Certified Product Performance as the go-to source for looking up PINs, avoiding the need for new PINs, which would cause additional challenges.

• “The AHRI Directory is the trusted source for performance certified HVACR and water heating equipment. On the public side… engineers, contractors, regulators, and consumers can search by product lines, certified ratings, or brands to find the information they need, when they need it,” they said.
• “The AHRI Directory would be enhanced — at AHRI’s expense — to produce a unique 17-digit AHRI certificate number for all 25C AHRI qualifying products and systems.”
• ACCA also called for more educational resources for contractors and consumers regarding 25C.

The bottom line: AHRI believes its proposal for using directory-produced PINs will satisfy all of the IRS’s 25C requirements while imposing the least burden on manufacturers, contractors, and most importantly, taxpayers.