HEEHRA

WMno57

Two lumberjacks (cutting wood because their heat pumps failed) were being chased by a bear. One asks the other "How do we outrun the bear?" The reply, "We can't, I just have to outrun you".
I'm patting myself on the back because I'm the first on HeatingHelp to use the term HEEHRA (did a search, I'm the first, WooHoo). What is HEERAH? At the moment, I know very little about it. I suspect it will have huge implications for HVAC Contractors and Homeowners over the next 10 years.
I don't even know how to pronounce it. Maybe a mashup of Hee Haw and Oorah?
The High Efficiency Electric Home Rebate Act is the official name of the 2022 Inflation Reduction Act's heat pump incentive program. There will be point of sale rebates on any heat pump for home heating and cooling up to $8,000. This means the rebate amount is automatically deducted from the price at the time of sale, no need for a homeowner to send in for a refund.
https://en.wikipedia.org/wiki/Inflation_Reduction_Act_of_2022
If you are a HVAC contractor, don't be the slow Lumberjack. Study up on HEERAH and outrun your competition.

WMno57

As the Department of Energy issues rules to the State programs, I will update information here in post 2.

October 22 update. Best article I've read so far. Written by David Zubler. David is a tax accountant and Enrolled Agent in East Tennessee, providing tax strategies and representing clients before the IRS and has over 25 years of tax experience.
here is a link to the article:
https://www.therogersvillereview.com/business/article_2555951a-3e8f-11ed-b81c-a3da30b01b3c.html
Check out David's website here:
https://www.yourtaxcare.com/
and the Ruth Zubler Boyer Foundation "to provide scholarships to less financially fortunate high school students who have performed kind and selfless acts in their community" here:
https://www.yourtaxcare.com/ruth-zubler-boyer/
David's article follows:
The Inflation Reduction Act offers up to $14,000 in rebates and credits for making your home more energy efficient.
The programs are still a few months from starting; however, you may want to research any possible purchases that you might make. And you may want to contact a contractor to schedule any work you want to do.
Rebates provide immediate benefits because they are applied when the item is purchased. Tax credits are received when you file your tax return.
Tax credits differ from rebates because buyers receive them when they file their taxes. Rebates are typically applied when the item is purchased. The HEEHRA rebates are slated to be available at the point of sale, such as when a consumer buys a heat pump through a home supply store.
There are two rebate programs.
The Homes Rebate Program provides over $4 billion to states to help people make their entire home more energy efficient. This program offers rebates based on the energy savings their upgrade will achieve. Homeowners who reduce their energy usage by at least 35% can get up to $4,000 in rebates. Low and middle-income households can get up to $8,000 in rebates.
The HOMES Rebate program includes new windows and solar panels that make your home more energy efficient. The HOMES Rebate should begin on August 16, 2022, when the Inflations Reduction Act became law. Details about how to claim retroactive rebates are not available at this time.
The High-Efficiency Electric Home Rebate Act (HEEHRA) provides rebates for low and middle-income families to electrify their homes. This includes installing heat pumps and electric clothes dryers. The maximum household rebate is $14,000. Two rebates can’t be claimed for the same upgrade. For instance, you can’t claim a Homes rebate and a HEEHRA rebate for the same upgrade.
The HEEHRA rebate is planned to be available at the point of sale, such as when a heat pump is purchased at a home supply store. The HEEHRA program offers rebates for qualified appliance purchases and other upgrades. The program can help offset part of the cost or even the total cost of heat pump installation. It provides rebates for heat pumps for up to $8,000. Rebates are also available for appliances like stoves and dryers.
The other items include:
$840 for electric stoves, cooktops, ranges, ovens
$8,000 for a heat pump
$1,750 for a heat pump water heater
$1,600 for insulation, air sealing, and ventilation
$2,500 for electric wiring
$4,000 for an electric load service center upgrade
You may want to schedule an energy audit of your home to help you determine which upgrades will benefit you most.
More details regarding the rebates and credits will become available in a few months.
end of David Zubler article

following is older links and info that I need to clean up:
https://www.rewiringamerica.org/about
https://www.hunker.com/13773965/inflation-reduction-act
https://ami-lookup-tool.fanniemae.com/amilookuptool/
https://www.cbsnews.com/news/inflation-reduction-act-joe-biden-climate-energy-home-upgrades/

"However, for the direct point-of-sale rebates, it's a bit more complicated and things are still in flux, according to Calisch.
"These are the parts that are yet to be determined and will likely vary state to state because this is a state-administered program and not going to be a federal-administered program," Calisch tells Hunker. "The Department of Energy is going to prepare guidance to the state energy offices to set up their programs. The Department of Energy is going to solicit opinions from all the people it can, and synthesize a best practice version of this. And that's going to happen pretty quickly here."
As of press time, there's no definitive answer to how this will look exactly, but the idea, Calisch says, is that consumers will have to pre-qualify for the rebates so that they won't have to pay any out-of-pocket costs. Likely, for most of these upgrades you'll be working with a contractor, who will have to check a box that says "yes, I am replacing a piece of fossil fuel equipment" and from there, they will knock the costs off the top of your bill."

There are two separate rebate programs, according to the NRDC.
The HOMES Rebate Program: This provides more than $4 billion to states to help residents make their entire home more energy-efficient. The program provides rebates based on the energy savings their upgraded home will achieve. For instance, homeowners that make changes that cut their energy usage by at least 35% can get up to $4,000 in rebates. That amount is doubled for low- and middle-income households, who can get up to $8,000 in rebates.
High-Efficiency Electric Home Rebate Act (HEEHRA): This provides rebates for low- and middle-income families to electrify their homes, such as by installing heat pumps or electric clothes dryers. The per household rebate is capped at $14,000, and households can't receive two rebates for the same upgrade. For instance, if they claim a HOMES Rebate program for a heat pump, they can't also get a rebate through the HEEHRA.

WMno57

Still waiting for more details from the Department of Energy.

EBEBRATT-Ed

What about a building that heats with electric baseboard and cools with a through the wall slid in ac unit. I would replace the slide in ac unit with a slide in heat pump even if I don't get a rebate

JakeCK

EBEBRATT-Ed said:

What about a building that heats with electric baseboard and cools with a through the wall slid in ac unit. I would replace the slide in ac unit with a slide in heat pump even if I don't get a rebate

I would remove the slid in, frame and insulate the hole, and install a mini split in it's place. The mini split should qualify for something. 

WMno57

@EBEBRATT-Ed I think the rebates will be on any new Heat Pumps. Also electrical updates, HP water heaters, and I think several other electrical appliances. One question I have is if the DOE is consulting with any industry trade groups representing small business contractors. If these are point of sale rebates, how will contractors get reimbursed?

EBEBRATT-Ed

@JakeCK that would be nice but the condo association won't allow it

WMno57

best article I've read so far:
https://www.therogersvillereview.com/business/article_2555951a-3e8f-11ed-b81c-a3da30b01b3c.html
I have copied the entire article to the top of Post 2 in this thread.

JakeCK

EBEBRATT-Ed said:

@JakeCK that would be nice but the condo association won't allow it

I hate condo associations almost as much as HOA's. Generally ran by a bunch of busy body Karen's. 

rconkling

EBEBRATT-Ed said:

@JakeCK that would be nice but the condo association won't allow it

Get on the board and make change happen.

Associations are awful when it comes to making changes.

I believe there are/were packaged HP units that are supposed to be direct replacements for those slide-in AC units.

Had a friend in N. Illinois in the same predicament that was going that route. Not sure if it ever happened though.

WMno57

https://www.rewiringamerica.org/app/ira-calculator

JakeCK

WMno57 said:

https://www.rewiringamerica.org/app/ira-calculator

Found that site about a week ago didn't know if it was legit or not.

WMno57

I think Rewiring America is making some assumptions before DOE releases rules to the States. It does appear there will be significant credits and rebates for middle income people.