Requirements for Taxpayers Claiming the Credit
For any item of qualifying property installed on or after January 1, 2025, taxpayers must:
- Purchase products from a qualified manufacturer (QM). The IRS will publish a list of QMs and the date that their applications were accepted on IRS.gov. Please note that a QM may also produce products that are not eligible for the credit, so it is important to make sure that the products purchased have a PIN from the QM. If you cannot locate the PIN, contact the QM who must make the PINs available upon request. (Note: Taxpayers may use a QM Code in lieu of a PIN for enabling property and specified property placed in service in 2025.)
- Include the Product Identification Number of the item on their tax returns. If the property was placed in service in 2025, taxpayers may use a Qualified Manufacturer Code (QM Code) – a unique 4-character code assigned to a QM, in lieu of a PIN.
All property that is eligible for the credit requires a PIN, except for:
-insulation materials or systems (including air sealing materials or systems)
-enabling property, such as an electric panel upgrade (taxpayers may use a QM Code in lieu of a PIN)
-No PIN is required for a home energy audit.
Note: For heat pumps with an indoor and outdoor unit, PINs are only required for the outdoor unit. Taxpayers who claim the credit for a heat pump must include the PIN from the outdoor unit on their tax returns.
Requirements for Manufacturers Selling Qualifying Products
Starting January 1, 2025, the IRS requires that manufacturers who sell products that qualify for the tax credit must (1) register through the IRS Energy Credits Online Portal as a qualified manufacturer (QM) to receive a certification and a unique 4-character QM code, (2) assign a product identification number (PIN) to each item of property that they sell that qualifies for the tax credit, (3) label the qualifying products with the PIN (either by affixing a label to it, etching the PIN on the product, affixing label to product packaging, printing directly on packaging, or including a document with the PIN inside the packaging) and (4) report the qualifying PINs to the IRS.
For products installed on or after January 1, 2025, and before January 1, 2026, QMs must provide PINs to taxpayers purchasing qualifying products (1) when the taxpayer installs the product, (2) when the taxpayer requests a PIN from the QM, or (3) when the manufacturer becomes a QM, whichever is later. (Because the QM registration is currently in process in early 2025, for this period just the 4-character QM code is needed, in lieu of the full PIN.)
For additional explanations and information, see the IRS “Updates to frequently asked questions about the Energy Efficient Home Improvement Credit (§ 25C) and the Residential Clean Energy Property Credit (§ 25D)” Factsheet