Exciting HVAC Savings from the Inflation Reduction Act
Over our twenty-plus years in business, All American Heating, Air Conditioning, and Plumbing has helped usher in many new environmentally conscious products, ensuring that we are always at the forefront of the latest HVAC innovations and EPA manufacturing regulations.
As we continue to advocate for the most energy-efficient products available, we would like to share with you the most recent EPA changes regarding the Inflation Reduction Act, which will apply to the Home Improvement Tax Credit starting in 2024. We want to give clients the most up-to-date information regarding your HVAC products.
Our mission, focus, and commitment remain the same as always: to bring you cutting-edge products for your home and life while helping reduce energy consumption for a cleaner, greener planet.
What is the Inflation Reduction Act?
The Inflation Reduction Act (IRA), initially signed in August 2022, set aside $370 billion to incentivize residential energy-efficient purchases. As a result of this new act, manufacturers are tasked with ensuring their products meet the most recent EPA guidelines for more significant energy conservation.
The IRA is a ten-year plan, so you will see numerous developments and rollouts along the way that will ensure everything is being done to promote clean energy programs, products, and services for long-term sustainability.
How Does this Change Manufacturing?
The EPA mandates will begin with reducing HFCs (potent greenhouse gas emissions) by phasing down production, consumption, maximizing reclamation and minimizing releases from equipment, and transitioning to next-generation technologies, according to the EPA.
There are a number of regulatory actions for managing the use and reuse of HFCs and substitutes to ensure manufacturers are adhering to the guidelines set forth by the EPA through technology transitions restrictions.
Companies must stop manufacturing units utilizing 410A (refrigerant) by December 31, 2024. In 2023, HVAC companies will sell units with 410A and the new models that will run off the new EPA-approved refrigerant. Please note that there are two different types of new refrigerant based on which manufacturer the consumer purchases.
On December 20, 2023, the EPA administration addressed concerns and thus amended the timeline for the installation compliance date for residential and light commercial heat pump and air conditioning equipment to January 1, 2026, for equipment manufactured before January 1, 2025.
Equipment manufactured after January 1, 2025, will be labeled “For servicing existing equipment only,” and cannot be used to install a complete system.
A final regulation to allow for installation of higher-GWP HFC equipment manufactured or imported before January 1, 2025, to be installed has been amended until January 1, 2026.
What Does this Mean for Consumers?
In terms of energy-efficient products, the Inflation Reduction Act (IRA) provides tax credits to homeowners who purchase qualified high-energy HVAC systems, such as furnaces, air conditioners, heat pumps, fans to name a few.
These changes are timely for families looking to save money while ensuring that the products they buy are designed and built for greater energy efficiency, are eco-friendly, and help the environment one product at a time.
Energy Credits and Rebates
With the extension of the Energy Efficient Home Improvement Tax Credits (25C), the New Energy Efficient Home Tax Credit 45(L), and the Energy Efficiency Rebate Programs, families have a bright future ahead of them. These all fall into win-win categories, offering households and families more options for reimbursement when purchasing energy-saving HVAC products.
We want to provide our customers with the most recent rules and guidelines so they can make educated decisions because we recognize that there is a lot of information available about the Inflation Reduction Act, its modifications, and its effects.
All American Heating and Air
All American Heating and Air will continue to monitor and share any future pertinent materials that become available regarding the new EPA regulations.
To assist you with your selection process and to answer any questions you may have, please don’t hesitate to contact any of the experienced team members at All American Heating and Air at 919-782-6242.