Inflation Reduction Act Heat Pump Credits & Rebates: DETAILS??
Supposedly the Inflation Reduction Act credits & rebates are available Jan 1, 2023, yet there is hardly any information about them.
The tax credit is up to $2k (are they refundable or can they be carried over?), and from what I have been able to research, applies to heat pumps that meet the CEE requirements for 2023, and there are different tiers for ducted & non ducted heat pumps.
– Do the ducted units need to be mini splits to meet these requirements, or will standard heat pumps qualify?
– Per the CEE site, “electric or natural gas heat pumps” qualify. What is a natural gas heat pump and are they readily available for residential install?
– Where can someone who needs to replace an ducted gas furnace NOW go for this information?
Those with incomes up to 150% of the local median income supposedly qualify for up to $8k in rebates for ELECTRIC heat pumps.
– Supposedly each state has to work out their rebate program and most have not yet done so. If someone who qualifies for the rebate has an electric heat pump installed now, can they retroactively apply for the rebate???
– Which electric heat pumps will qualify for the rebate?
I am hoping those on this site might have more info than the random internet sites that all seem to be trying to sell something.
What type of system would you advise a lower income person, whose gas furnace was diagnosed with a cracked heat exchanger, to replace it with, if they need to get a replacement now, and want to maximize their potential rebate?
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I just started looking into this as well and found my way to rewiringamerica.org, which seems to be the central hub of info at the present time. One thing I read there that surprised and disappointed me is that to qualify for these rebates you must be replacing a fuel-powered device. So if you currently heat your house with electric resistance heat you would not qualify for the heat pump rebates. How they would enforce this, I have no idea. I’m really hoping that information is incorrect but that stipulation is clearly stated on the site.
Thank you. Rewiringamerica.org guide is well written for the average person to understand the Inflation Reduction Act.
Unfortunately the only thing I found on their website to guide someone who needs to replace an old gas furnace this week is a fact sheet that explains it is up to each state whether to make the rebates retroactive to Jan 1, 2023....very disappointing.
I'm keeping an eye out,... unfortunately, the information doesn't exist yet.
Well, it appears this is not all in the hands of individual states at this time. Below is an excerpt from this article I found written less than a week ago:
https://www.georgiatrend.com/2022/12/31/the-future-of-clean-energy/
"The act, according to the White House, will achieve this by offering rebates to millions of eligible low- and moderate-income households that will cover 50% to 100% of the cost of installing new electric appliances, including super-efficient heat pumps, water heaters, clothes dryers, stoves and ovens.....states can’t apply for any benefits until the U.S. Department of Energy (DOE) finishes writing the rules and regulations for how the IRA’s tax credits, grants and rebates can be used. No one knows just when that process will be completed."
I've read that they're projecting March or April to release the rules and regs.
Just dropping a recommendation that you hold off on any big purchases until the regs are formalized. I work in commercial solar and the ITC transferability rules from the IRA are going to be huge, but we've got to wait until guidance is published in mid-Feb., then we all have to interpret it and go from there.
Probably not fun waiting to buy new HVAC equipment in a house that needs it, but hold tight and it'll be worth it!