On Oct. 25, US IRS proposed regulations for qualified manufacturers.
US IRS, Treasury published Revenue Procedure 2024-31 and proposed regulation for property manufacturers to register for energy efficient home improvement tax credits.
Regulatory Proposal
Proposed regulation specifies process to register as a Qualified manufacturer (QM), to enter into agreement with US IRS, and receive tax credit for qualified products install.
Covers QM registration application and agreement submission requirements, voluntary discontinuance or revocation of QM status, special registration procedures for 2025.
Where application made prior to Apr. 30, 2025 will be deemed QM as of Dec. 31, 2024.
Provides examples to meet system requirements and outlines reporting obligations.
Beginning 2025, only registered QMs are eligible for credit for installs placed in service.
Tax Credits
For property placed in service beginning in 2023, a taxpayer may take a credit equal to 30% of total amount paid for certain energy efficient products/for home energy audit.
Credit limited to certain amounts, per taxpayer, per tax year, general total limit $1.2k.
Taxpayer may claim a total credit of up to $3.2k, separate total limit of $2k for electric or natural gas heat pump water heaters, heat pumps, certain biomass stoves/boilers.
$1,200 general limit included additional limitations specific to certain types of property.
$600 any qualified energy property item; $600 total for exterior windows, skylights.
$250 exterior door; $600 in total for exterior doors; $150 Home energy audits.
Beginning 2025, for each item of specified property placed in service, no credit unless item was produced by QM, taxpayer includes PIN for item on the taxpayer’s tax return.
Consultation Period
Proposed regulation published in the federal register, comment by Dec. 24, 2024.
