Iowa Inflation Reduction Act Resource

WHAT IS THE INFLATION REDUCTION ACT OF 2022?

The U.S. Government has passed the Inflation Reduction Act of 2022, a piece of legislation covering a broad spectrum of initiatives, including health care costs, clean energy, and the federal deficit among others. Of particular interest to homeowners, home builders and HVAC contractors, this act includes a number of incentives for the installation of high-efficiency home heating and cooling products.

THE REALITY ABOUT THE REBATES

• While the $4.3 billion rebate budget certainly catches your eye, it’s best to be patient and attentive to details for now. Here’s why:
• $4.3 billion in state-administered rebates on ENERGY STAR® certified equipment
• Extension and expansion of 25C, 25D, and 45L tax credits for CEE Highest Efficiency and ENERGY STAR® certified equipment
• Funds will be allocated to state energy offices with a fair amount of discretion on how they will be used.
• Depending upon the state, rebate programs may take some time to get implemented.
• Funding allocations will vary from state-to-state.
• The rebate program will not be available to all households. Households earning less than 80% of the median income can qualify for the full benefit. Those earning between 80 – 150% of the average median may be eligible for a partial (50%) benefit.
• Rebates will be subject to availability – the funds are capped, so they may run out before the ten-year period is over.