The Findings — Part 02
These Units Don’t Qualify for Rebates
Unqualified Rebates Will Get Clawed Back With Fines
A core qualification for rebates in both US and Canada is a listing in the U.S. DOE Compliance Certification Management System (CCMS) or in Natural Resources Canada’s Searchable Product List.
Submitting a rebate application identifying an unlisted unit as eligible is a false and fraudulent claim. An applicant attestation that the unit qualifies, where the unit is not listed, is itself a separate offence under U.S. and Canadian law, independent of the underlying claim. Reported prosecutions have produced sentences of up to 9 years’ imprisonment, restitution exceeding $51 million, and property forfeiture exceeding $4 million. The IRS recovered more than $1.5 billion in residential energy and related tax credits in 2024–2025, including credits paid four to five years earlier.
This is something anyone can easily check.
Step 1. Review the qualifications of the Rebate
Step 2. Check if the model is listed
Country | Database | Statutory authority |
|---|---|---|
United States | DOE Compliance Certification Management System (CCMS) | 10 C.F.R. § 429; for IRC § 25C, IRS-registered Qualified Manufacturer under 26 U.S.C. § 25C(h). |
Canada | NRCan Searchable Product List | Energy Efficiency Regulations, 2016, SOR/2016-311, made under the Energy Efficiency Act, S.C. 1992, c. 36. |
False Eligibility Attestation Is a Criminal Offence
An attestation that the unit qualifies, made in respect of a unit that is not listed in the gating database, is an offence in addition to the underlying false rebate claim. The offence attaches to the act of attestation itself, independent of whether the rebate is paid and independent of whether the underlying claim is also charged.
United States: 18 U.S.C. § 1001 (false statement to a federal agency); 26 U.S.C. § 7206(1) (false return under penalty of perjury). Canada: Energy Efficiency Act, S.C. 1992, c. 36, s. 27(3) (knowingly false statement under the Act); Competition Act, R.S.C. 1985, c. C-34, s. 52 (false or misleading representations to the public, including representations about the availability of a rebate). Each application constitutes a separate offence.
Statutory Penalty Provisions
Conduct | United States | Canada |
|---|---|---|
False eligibility attestation | 18 U.S.C. § 1001 (false statement to a federal agency) — up to 5 years’ imprisonment per statement. 26 U.S.C. § 7206(1) (false return signed under penalty of perjury) — up to 3 years’ imprisonment plus a fine of up to $100,000. | Energy Efficiency Act s. 27(3) (knowingly false statement under the Act) — fine up to $10,000. Competition Act s. 52 (false representation about rebate availability) — up to 14 years’ imprisonment plus an unlimited fine. |
False rebate or tax-credit claim | 18 U.S.C. § 287 (false claim against the United States) — up to 5 years’ imprisonment per claim. 26 U.S.C. § 7206(2) (aiding and assisting the filing of a false return) — up to 3 years. | Criminal Code s. 380(1)(a) (fraud over $5,000) — up to 14 years’ imprisonment. Section 380(1.1) imposes a mandatory minimum of 2 years where total fraud exceeds $1,000,000. ITA s. 239(1.1) — up to 5 years’ imprisonment plus a fine of 100–200% of the amount sought. |
Per-submission counting | 18 U.S.C. §§ 1341, 1343 (mail and wire fraud) — up to 20 years per count (30 years where a financial institution is involved). Each application is a separate count. | EEA s. 28 — each day of a continuing offence is a separate offence. EEA s. 29 — directors, officers, and agents personally liable, regardless of corporate prosecution. |
Civil clawback and recovery | IRC § 7405 (recapture); § 6601 (interest); § 6321 (federal tax lien). 31 U.S.C. § 3729 — FCA treble damages plus $14,308–$28,619 per claim. IRC § 6663 — 75% civil-fraud penalty. | Financial Administration Act, R.S.C. 1985, c. F-11, s. 155 — NRCan grant repayment. ITA ss. 152, 222 — CRA reassessment and collection. ITA s. 163(2) — 50% gross-negligence penalty. Provincial CPA contract rescission (e.g., Ontario CPA, 2002, s. 18). |
A Plain-Language Guide to the Terms Used in This Report
Before examining each brand, here is a brief glossary of the technical terms that appear throughout. Understanding these will help you follow the evidence.
BTU (British Thermal Unit): The standard unit for measuring heating or cooling capacity. A higher BTU rating means a more powerful unit.
Watt (W): The unit of electrical power consumed. The relationship between BTU output and watt input determines efficiency.
EER (Energy Efficiency Ratio): An older efficiency metric calculated by dividing BTU output by watt input. No longer the legally required rating in the US or Canada for most product types covered here.
EER2: An updated version of EER using a revised test procedure. Required under current US regulations.
SEER / SEER2 (Seasonal Energy Efficiency Ratio): A measure of cooling efficiency over an entire season. SEER2 is the current legally required standard in the US. The minimum required SEER2 for the product category covered here is 13.4.
HSPF2 (Heating Seasonal Performance Factor 2): The legally required heating efficiency metric in the US.
COP (Coefficient of Performance): A heating efficiency ratio. Not the legally required metric in the US or Canada for the products covered here.
CEER (Combined Energy Efficiency Ratio): A Canadian efficiency metric. It applies only in Canada and only until May 26, 2026. Critically, CEER must always be lower than EER for the same unit, because it accounts for standby power consumption. Any brand claiming a higher CEER than EER is publishing an impossible number.
AHRI Certification: Third-party verification by the Air-Conditioning, Heating, and Refrigeration Institute that a product performs as claimed. None of the products in this report holds this certification.
PTHP (Packaged Terminal Heat Pump): A specific product category defined by law. A PTHP must be designed for through-the-wall installation with a removable chassis and a wall sleeve. Products that do not meet this design definition cannot legally be labeled as PTHPs.
NRCan Searchable Product List: A mandatory Canadian government database where energy-consuming products must be registered before sale. Absence from this list means the product is not legally approved for the Canadian market.
DOE CCMS Database: The US Department of Energy's Compliance Certification Management System — the equivalent mandatory registration database for the American market.