Inflation Reduction Act \u2013 Frequently Asked Questions<\/p>\n
Please note that information is still forthcoming and evolving. There are several unknowns at the state level, and changes are inevitable.<\/p>\n
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There are four tax credits available. Tax credits are federal income tax credits available to anyone with taxable income. Tax credits can be combined, and rebates can be filed for the following calendar\/tax year.
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QUALIFICATIONS<\/strong><\/p>\n \n\n \n\n \n\n \n\n <\/div>\n STATE REBATES \/ Point of Sale<\/strong><\/p>\n \n\n \n\n \n\n \n\n <\/div>\n TIMING<\/strong><\/p>\n \n\n \n\n \n\n <\/div>\n Talking Points<\/strong><\/p>\n Dealers should renew efforts in selling higher-efficiency systems by researching the potential tax credits available and the products that meet the efficiency requirements to earn the credit. Then communicate potential incentives in every sales presentation and reach out to customers who installed qualifying systems in 2022, as they may qualify for credits as well.<\/p>\n","protected":false},"excerpt":{"rendered":" Inflation Reduction Act \u2013 Frequently Asked Questions Please note that information is still forthcoming and evolving. There are several unknowns at the state level, and<\/p>\n","protected":false},"author":15,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"footnotes":""},"class_list":["post-63545","page","type-page","status-publish","hentry"],"acf":[],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\tIs the tax credit based on a system combo installation? Can you qualify with just a heat pump only installation?<\/i><\/h3>\n <\/div>\n
\nThe IRS intends for a qualifying system. If the IRS requires an AHRI certification number, then a heat pump would have to be installed as part of a matching system.
\n<\/div>\n <\/div>\n <\/div><\/p>\nDoes AHRI state if a match-up is eligible for tax credit?<\/i><\/h3>\n <\/div>\n
\nAHRI has not updated their site to match the 2023 tax requirements or ENERGY STAR 6.1 requirements.
\n<\/div>\n <\/div>\n <\/div><\/p>\nWhat rating do we use if there is mixed equipment?<\/i><\/h3>\n <\/div>\n
\nAll requirements for 2023 installations reference M1 ratings. There is no direction yet for mixed M-rated equipment.
\n<\/div>\n <\/div>\n <\/div><\/p>\nHow does the new IRA tax credit work in homes with multiple systems?<\/i><\/h3>\n <\/div>\n
\nRegardless of the number of systems, the taxpayer is limited by the annual limit. To maximize the tax benefit, systems should be installed in different years.
\n<\/div>\n <\/div>\n <\/div><\/p>\nCan Federal rebates be combined with state rebates like NYS Clean Heat?<\/i><\/h3>\n <\/div>\n
\nFederal rebates cannot be combined with other federally funded rebate programs included in the IRA.
\n<\/div>\n <\/div>\n <\/div><\/p>\nWill dealers have to require financial records at point-of-sale?<\/i><\/h3>\n <\/div>\n
\nWe do not know this information at this time.
\n<\/div>\n <\/div>\n <\/div><\/p>\nHow are dealers supposed to administer a POS rebate without verifying household income?<\/i><\/h3>\n <\/div>\n
\nEach state will determine this process.
\n<\/div>\n <\/div>\n <\/div><\/p>\nAre contractors expected to float thousands of dollars until funded by the state government?<\/i><\/h3>\n <\/div>\n
\nEach state will determine this process.
\n<\/div>\n <\/div>\n <\/div><\/p>\nWill customers seeking to take advantage of the rebate programs for 2023 installations be able to retroactively apply once their state establishes the program?<\/i><\/h3>\n <\/div>\n
\nNo information is available yet. This will be decided at the state level.
\n<\/div>\n <\/div>\n <\/div><\/p>\nAre tax credits retroactive to 2022?<\/i><\/h3>\n <\/div>\n
\n2022 installations that qualified based on 2022 criteria can be filed for credit in the 2023 tax year. 2023 installations must meet 2023 criteria and would be filed in 2024.
\n<\/div>\n <\/div>\n <\/div><\/p>\nIs there any indication from the IRS that there will be a lifetime limit on payouts?<\/i><\/h3>\n <\/div>\n
\nPlease consult your tax professional for more information.
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