Helping Homeowners Save Money With the Inflation Reduction Act
How to make the most of the Inflation Reduction Act in your business
What is the Inflation Reduction Act?
Signed into law on August 16, 2022, the federally funded Inflation Reduction Act (IRA) consists of a record $370 billion reserved for climate and energy initiatives. It offers homeowners an opportunity to save on the cost of replacing or upgrading their HVAC systems with higher-efficiency equipment that can lower their energy consumption and utility bills while working toward the greater goal of reducing Americans' carbon footprint by 40% by 2030.
Beginning with products installed on January 1, 2023, and extending through 2032, new energy tax credits will be available for qualifying equipment, including:
- Tax credits up to 30% of eligible expenses or up to $600 per appliance
- Tax credits equaling $1,200 per year (up from 10% and $500 lifetime)
- Tax credits up to $2,000 per year for heat pumps
- The 25C tax credits (previously called the Nonbusiness Energy Property Credit) were extended through December 31, 2022, at the previous credit levels and requirements
- 25C tax credits can also be used retroactively for qualifying electric heat pump installations from 2022
- The High-Efficiency Electric Home Rebate Act (HEEHRA) offers rebates of up to $14,000 per household when installing high-efficiency heat pumps and other efficiency improvements
- The HOMES rebate program, a $4.3 billion program that is part of the IRA, isn’t restricted by income level and is based on the actual performance of a homeowner’s whole-home energy efficiency and electrification improvements; the HOMES rebate program cannot be combined with the HEEHRA program, so make sure your customers talk with their tax consultant to determine which program works best for them
- Contact your state energy office for specifics of each program
Getting Started
We’ve outlined some great ways for HVAC professionals to learn more about the IRA, who is eligible and qualifying products.
- Sign up for clean energy updates
- Familiarize yourself with the Area Median Income Lookup, which is used in state-run rebate programs like HOMES and HEEHRA
- Find IRA-qualifying products in the AHRI database
- Find out more about featured YORK® IRA-qualifying products below
Featured products that qualify
HMH7 17 SEER2 Side-Discharge Modulating Heat Pump
The YORK® HMH7 heat pump is the ideal solution for spaces that require a compact design, but without any compromise to comfort or efficiency. An inverter system smoothly ramps up operation, avoiding spikes in energy use while helping increase overall system longevity. And with a design that is 40% more compact than standard heat pump units, the HMH7 is ideal for high-density areas. Enjoy a higher level of efficiency and increased comfort in a small package.
YH2F 15.2 SEER2 Two-Stage Heat Pump
The YORK® LX Series YH2F meets Energy Star/CEE Tier 1 efficiency requirements and is eligible for tax and rebate incentives through the Inflation Reduction Act (IRA). Designed to deliver year-round comfort, the ENERGY STAR®-qualifying 15.2 SEER2 efficiency means homeowners spend less on energy bills. Backed by the Good Housekeeping Seal, this split-system heat pump is specifically designed to be matched with YORK® indoor coils, furnaces and air handlers for a complete system solution.
YC2F 15.2 SEER2 Air Conditioner
YORK® YC2F Air Conditioner offers greater efficiency and performance in a small footprint. Energy Star-rated with up to 17.5 SEER2 efficiency, and 2-stage options for larger tonnages, this unit offers incredible value and performance at an affordable price. Innovative fan design provides quieter sound as low as 72 dBA. Designed for easy installation and servicing and backed by our industry-leading warranty, the YC2F provides lasting comfort and peace of mind for years to come.
YP9C 98% Modulating Gas Furnace
YORK® Affinity™ Gas Furnaces are redefining home comfort through an unparalleled combination of efficiency, convenience and reliability. The Affinity™ YP9C is designed to make home comfort more personal than ever before. As our most premium furnace, the YP9C features innovative technology that improves performance, provides consistent comfort and optimizes efficiency.
PCG6 15.2 SEER2 Electric/Gas Packaged Unit
The YORK® PCG6 Two-Stage Packaged Unit combines electric cooling and gas heating into one unit. It's the perfect design when interior space is at a premium. This ENERGY STAR®-rated, self-contained residential packaged equipment offers 15.2 SEER2 cooling efficiency and 81% AFUE gas heating efficiency. And with single- and three-phase models available in a variety of tonnage options, your YORK® contractor can match a model exactly to your needs so you feel perfectly comfortable.
Help homeowners save even more with combined credits and rebates from YORK®
REBATES
Share our Rebates and Savings Center with customers for geo-specific rebates on high-efficiency equipment.
TAX CREDITS
Encourage homeowners to check with their tax professional and to learn more about available tax credits.
FINANCE OPTIONS
Talk to your customers about the flexible payment options and financing available through YORK®.