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Tax Byte

For 2025, The IRA22 introduces a new requirement that certain energy-efficient home improvements will need product identification numbers to qualify for tax credits. This system, sometimes called the “HEEHRA ID” (Home Energy Efficiency Home Rebate Act ID) or “Product ID” requirement, is designed to verify that products meet the efficiency standards required for the tax credits.

Specifically:

  • Manufacturers will need to register qualifying products in a Department of Energy database
  • Products will receive unique identification numbers
  • Homeowners will need these ID numbers when claiming the 25C tax credit (Energy Efficient Home Improvement Credit) on their tax returns
  • This applies to windows, doors, insulation, HVAC systems, water heaters, and other qualifying improvements

The ID system is specifically for items that have clear manufacturer specifications and performance ratings that can be verified through a database. The Department of Energy is developing this database in collaboration with manufacturers to implement this requirement for the 2025 tax year.

Tax Professional Planning

When making energy-efficient home improvements in 2025, your client will want to confirm with manufacturers or retailers that their products have the required identification numbers before purchase.

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