Inflation Reduction Act Tax Incentives for Energy (not related to PV+ESS and EVs)

[holeydonut]

Hi ya'll. If you did any energy efficiency home improvement in 2023, don't sleep on form 5695 when submitting your 2023 taxes! There are lots of random things people do that could qualify... like a replacement window or patio door because some kid threw a baseball, a new front door to look bad-ass, adding some batting to your garage door,, or replacing skylights because your old ones are leaking.

It's not a huge amount of money, but $600 is $600. You can become a premium supporter on TMC or something.

But as always, remember... I'm a DAMF, and the first letter of DAMF is dumb. And being dumb... I use Turbotax. Also, don't rely on me for tax advice.

Anyway... I noticed that Turbo Tax Premier doesn't even bother steering users down the path of completing form 5695 in its normal user interface. The software guides users through questions about EV purchases or installation of EV charging equipment or solar and batteries. But, the TurboTax software (at least so far) doesn't ask about other home energy improvements (the ones mentioned in this thread). You need to click into [Forms] and load up 5695 manually to try and get your $600.

 

[wwu123]

What do folks think of the timing of getting a heat pump upgrade? I believe there is currently the 30% federal tax credit available already, but another portion of the IRA is the High-Efficiency Electric Home Rebate Program (HEEHRA), which can provide up to $8000 of the cost of a heat pump install. I believe our household would qualify at the 50% or 100% of installed cost tier, depending on our variable income this year or next (AMI thresholds in our Bay Area county would be $271K or $145K respectively.)

This one has been particularly difficult to get current information on, but basically each state has to create a program for administering it, and have that reviewed and approved be the federal agencies. Estimates were that it might go into effect by end of 2023, but one recent article suggested 12 states have now submitted including California, none have been reviewed and approved yet.

Even after it gets approved, it would be a point-of-sale rebate, so I could see additional delays if the HVAC installers need to submit and get approved for PoS, just like Tesla and others had to apply to offer the $7500 PoS advanced tax credits for EV's this year. And that also worries me, that the HVAC contractors will just jack up install prices by another $8000 from the high quotes they already do now in California, since they know they have you and basically demand will be much higher at that point.

We currently have a nice new-ish 96% efficient gas furnace, with a non-functional 60 year old A/C attached. I'd like to get the heat pump not only to have A/C, but the be able to run dual-fuel with our 7-month heating season. Specifically most interested in the Bosch BOVA/BOVB inverter heat pumps that would work with my three-zone Ecobee smart thermostats - and I could only find two obscure authorized Bosch installers within 200 miles of the Bay area. So I also wouldn't want to risk that California imposes additional requirements on their HEEHRA program, like removing the gas furnace, or only qualifying specific make/models (as Bosch could end up being slow to get on the list), on top of approving each contractor.

So take the 30% sure thing now, or hold out for the $4000/$8000 HEEHRA one?

 

[BGbreeder]

@wwu123 There is an upcoming webinar on HEEHRA/HEERA

Understanding The Inflation Reduction Act’s Decarbonization Rebate Programs: HOMES, HEERA, and EBD - California Housing Partnership

Delve into the Home Electrification and Appliance Rebate (HEEHRA) Program and Home Efficiency Rebates (HOMES) program offered through the Inflation Reduction Act. With an anticipated $582 million for California, these programs incentivize new constructions and retrofits, offering substantial...

chpc.net

Keep us informed. We are also considering some of the options.

All the best,

BG

 

[sunwarriors]

For people who want to play around with what they may qualify for:

Median Income lookup for area:

Area Median Income Lookup Tool

Savings Qualifier:

Household electrification incentives calculator from Rewiring America

Find out how much you could save with tax credits and rebates for heat pumps, water heaters, electric vehicles, electric stoves, rooftop solar, wiring upgrades, and energy efficiency improvements to your home.

www.rewiringamerica.org

 

[wwu123]

@wwu123 There is an upcoming webinar on HEEHRA/HEERA

Understanding The Inflation Reduction Act’s Decarbonization Rebate Programs: HOMES, HEERA, and EBD - California Housing Partnership

Delve into the Home Electrification and Appliance Rebate (HEEHRA) Program and Home Efficiency Rebates (HOMES) program offered through the Inflation Reduction Act. With an anticipated $582 million for California, these programs incentivize new constructions and retrofits, offering substantial...

chpc.net

Keep us informed. We are also considering some of the options.

All the best,

BG

Thanks for that headsup, I registered though I'm not sure I'll be able to join the Zoom at that time - but I will report back anything I find out if I do make it.

More I think about it, more I think any HVAC contractor that signs on for the point-of-sale rebates will raise any bids by at least $2000-6000, which is the difference between the $2000 max under the 30% tax credit and the possible max under the HEEHRA at the 50% and 100% levels. But such is the cynic in me. Will try to find some contractors to quote the Bosch now, before the HHEHRA program starts in California, to at least consider doing the install now.

 

[BGbreeder]

Thanks for that headsup, I registered though I'm not sure I'll be able to join the Zoom at that time - but I will report back anything I find out if I do make it.

More I think about it, more I think any HVAC contractor that signs on for the point-of-sale rebates will raise any bids by at least $2000-6000, which is the difference between the $2000 max under the 30% tax credit and the possible max under the HEEHRA at the 50% and 100% levels. But such is the cynic in me. Will try to find some contractors to quote the Bosch now, before the HHEHRA program starts in California, to at least consider doing the install now.

If you find one that you like, feel free to share their contact information...

 

[jeffkruse]

Turbo Tax finally included the electric heat pump option. My AC/heat pump cost me almost $10K last year and I’m getting 2K tax credit for this year. I had just enough of a tax liability this year to claim my Y $7500 and my electric heat pump $2000.

 

[holeydonut]

For the incentive on certain energy upgrades... here's the website that you can use to search to see if your windows, doors, skylights, whatever are "most efficient" Energy Star certified.

Product Finder — ENERGY STAR Certified Windows, Doors & Skylights

Compare ENERGY STAR Certified Windows, Doors & Skylights, find rebates, and learn more.

www.energystar.gov

 

[wwu123]

@wwu123 There is an upcoming webinar on HEEHRA/HEERA

Understanding The Inflation Reduction Act’s Decarbonization Rebate Programs: HOMES, HEERA, and EBD - California Housing Partnership

Delve into the Home Electrification and Appliance Rebate (HEEHRA) Program and Home Efficiency Rebates (HOMES) program offered through the Inflation Reduction Act. With an anticipated $582 million for California, these programs incentivize new constructions and retrofits, offering substantial...

chpc.net

Keep us informed. We are also considering some of the options.

All the best,

BG

I've got two HVAC contractors coming tomorrow to take a look at my setup for some heat pump quotes.

This might be a bit of a bummer regarding the both the 30%/$2K tax credit and the coming HEEHRA tax credit programs - I want to keep my existing 96% efficient furnace, but add the heat pump for dual-fuel/hybrid. It seems like to qualify, a heat pump model has to be Energy Star certified to meet certain performance - which makes sense of course - but it seems like the certifications the manufacturers submit rely on testing a certain combination of outdoor condenser, indoor coil, AND air handler (or possibly furnace), and those combos have an "AHRI" number in a federal database.

Even if a heat pump manufacturer does submit testing combo with furnaces, and not just air handlers, they're of course only going to do their own brand. And my Carrier furnace being 10+ years old and a discontinued model already, I'm sure even Carrier likely hasn't tested their current heat pumps with my furnace model. So not only would I be stuck with Carrier heat pumps, but I'd likely have to upgrade to a newer air handler or furnace anyways.

And certainly out of the question that the Bosch IDS inverter heat pumps I'm interested are certified with anything but their air handler (I don't think they even have a residential gas furnace).

So maybe good that I'm getting quotes now, as I'm not sure the tax credits would be worth it if I have to replace the furnace as well. At the very least, I'd hold out for$4K/$8KHEEHRA tax credits - the current $2K one doesn't stretch very far in California.

Other good news for me, is one of the contractors also mentioned Gree as another inverter heat pump maker, that retrofits well with existing setups, and Ecobee thermostats. They're not known much in the US, but I seem to recall them as a big overseas brand and possibly a big OEM for domestic brands. Another nice thing is they have outdoor condensers that can wall-mount, similar to those you see on high-rise condos and balconies - that form factor might fit better on the side I need the condenser unit. The 60-year old condenser is shaped like that but has a tiny pad, and pouring a new level pad for the more typical boxy condenser might be challenging due to the slope.

EDIT: Possibly the air handler/furnace does not have to match the one used in the testing for the AHRI certificate, maybe just the matching condenser and coil is sufficient. I do see some websites saying dual-fuel setups can qualify for the current $2K tax credit, though they say "maybe"...

 

[BGbreeder]

@wwu123 Yes the ratings are all based on the combination of components. Here in California, it doesn't matter for most folks, but in more humid areas, the most efficient evaporators may not get the air cold enough for optimal humidity reduction and the systems will therefore require an additional dehumidifier system. Though not currently very common, I think that having a dedicated dehumidifier is preferable to an oversized AC/undersized evaporator from both an energy and humidity control points of view.

Some of the rebates require replacing gas/propane or resistance electric with an energy star rated heat pump system. I.e. dual fuel systems aren't eligible. I would check the fine print.

All the best,

BG

 

[evo9rs]

this is great stuff! thank you guys for this.

 

[wwu123]

@wwu123 Yes the ratings are all based on the combination of components. Here in California, it doesn't matter for most folks, but in more humid areas, the most efficient evaporators may not get the air cold enough for optimal humidity reduction and the systems will therefore require an additional dehumidifier system. Though not currently very common, I think that having a dedicated dehumidifier is preferable to an oversized AC/undersized evaporator from both an energy and humidity control points of view.

Some of the rebates require replacing gas/propane or resistance electric with an energy star rated heat pump system. I.e. dual fuel systems aren't eligible. I would check the fine print.

All the best,

BG

Yes, some of the local rebates including the one from my CCA require replacing, or removing, the gas furnace for sure. The federal one does not, but the system components must match an eligible AHRI certificate in the database - it could be missing if it's not efficient enough, or I guess if the manufacturer has not submitted a particular set of components.

Slight good news that in searching the AHRI database, I realized that "air handlers" include the coil, so there are AHRI for condenser+air handler, but also condenser+coil only (to go on an arbitrary furnace), as well as condenser+coil+furnace combos. So there are AHRI certs for just condesner + coil, that can be used dual-fuel with an existing non-matched furnace.

The slightly bad news is there are far fewer qualified condenser+coil certs, compared to the same combo with matched air handler or furnace. I think they have to assume a generic non-optimal blower situation, and so the efficiency ratings are somewhat lower and fall below the threshold. So on the Bosch, there are qualified ones in 2,3,4,5 ton sizes certified with their air handler - but if just their coil, only the 2-ton and maybe a 5-ton. For the Gree, gets worse, everything is qualified with their air handler, but none of the condenser+coil certs meet Energy Star or CEE1 (the new threshold I think created for the IRA deduction). Well, the 2-ton meets CEE1-North, but not CEE1-South (southern US, includes California).

2 to 3-ton would probably be OK size for my needs, but the premium for a heat pump over regular A/C unit, and getting no or only $2K, may not make dual-fuel worth it, might end up being simpler/cheaper for me to just add a small single-stage A/C with no tax credit and more choices, but lose out on dual-fuel.

 

[BGbreeder]

Yes, some of the local rebates including the one from my CCA require replacing, or removing, the gas furnace for sure. The federal one does not, but the system components must match an eligible AHRI certificate in the database - it could be missing if it's not efficient enough, or I guess if the manufacturer has not submitted a particular set of components.

Slight good news that in searching the AHRI database, I realized that "air handlers" include the coil, so there are AHRI for condenser+air handler, but also condenser+coil only (to go on an arbitrary furnace), as well as condenser+coil+furnace combos. So there are AHRI certs for just condesner + coil, that can be used dual-fuel with an existing non-matched furnace.

The slightly bad news is there are far fewer qualified condenser+coil certs, compared to the same combo with matched air handler or furnace. I think they have to assume a generic non-optimal blower situation, and so the efficiency ratings are somewhat lower and fall below the threshold. So on the Bosch, there are qualified ones in 2,3,4,5 ton sizes certified with their air handler - but if just their coil, only the 2-ton and maybe a 5-ton. For the Gree, gets worse, everything is qualified with their air handler, but none of the condenser+coil certs meet Energy Star or CEE1 (the new threshold I think created for the IRA deduction). Well, the 2-ton meets CEE1-North, but not CEE1-South (southern US, includes California).

2 to 3-ton would probably be OK size for my needs, but the premium for a heat pump over regular A/C unit, and getting no or only $2K, may not make dual-fuel worth it, might end up being simpler/cheaper for me to just add a small single-stage A/C with no tax credit and more choices, but lose out on dual-fuel.

I would not overlook the big improvements in blower technology that significantly reduce the power consumed in moving air for heating/cooling. There is also a mismatch in the air flow needs for a heat pump vs other types of furnaces that operate with a higher air temperature.

I'm not trying to talk you out of a dual fuel arrangement; I have been researching this for awhile and all of the gas + heat pump combinations that I have found need to be a designed unit, or there is a (significant) hit to efficiency. I'm on the fence about how essential reducting is to heat pump performance (my guess is that it is probably important due to the differences in air flow speeds, pressures, and temperature differences), but I do think that resealing the ducts, and redoing/improving the insulation is likely worthwhile. My overall conclusion was the actual heat pump was a small part of the solution for improving the heating/cooling energy use.

I also would seriously consider leakproof triple pane windows and reducing other ways air can penetrate your home envelope; outlets, plumbing penetrations, water heater flue, vents (bathrooms/kitchen), and gas ovens all can contribute to air leaks. Once you get the house tight, you need an air exchanger /heat recovery unit with good filters. Good HEPA filters on the make up air is, I think, essential going forward due to wildfire smoke and pollen/dust.

Basically, I would start with a thorough energy audit from a good inspector that includes leak testing the home, and then go from there. In my experience, Californian homes are generally not great, even more recently constructed ones, compared to say Minnesota or Texas, where the environment is harsher and more attention is paid to the building envelope and insulation.

All the best,

BG

 

[evo9rs]

question - how does one go about claiming this? and, how does one prove it?
for example, will a simple reciept of the equipment work? do I need to provide a picture of the new installation?

 

[wwu123]

question - how does one go about claiming this? and, how does one prove it?
for example, will a simple reciept of the equipment work? do I need to provide a picture of the new installation?

Form 5695 on your tax return, as holeydonut helpfully linked in the first post, is where you claim everything when you file your return. For the heat pumps I've been talking about, they're on Section B, Line 29, for example. You claim it, and it offsets the taxes you'd normally pay on your income.

How do you prove it? It's the IRS - the tax return forms are fairly short - you don't prove anything, you just claim it. It's only if you get audited, that you have to prove things and then maybe could get busted. So you could claim you did a wind farm, geothermal, fuel cells, all in the same year, unless you get flagged or audited, you don't submit any receipts to the IRS with your return.

But if you're strict, or your tax accountant/preparer is strict like mine, then you would probably need to show receipt/invoice for the costs of equipment and labor, maybe from a contractor is ideal to prove installation/placed in service date (though none of these preclude DIY per se). Since these energy improvements often have an efficiency criteria, there is usually some standard and qualifying database that the manufacturers have to get their qualifying model numbers on. For the heat pumps, the govt-related entities seemed to have rode on this industry AHRI certification database, but created these new CEE 1/2/Advanced Tiers, that each model/system is newly flagged as qualifying for CEE1 North or CEE1 South (split the US into two climate zones).

There is an AHRI certificate number for each model, has the model numbers, that you could get from your installer, or download directly like I did. Then a strict accountant would make sure the invoice is sufficiently clearly with the same model numbers as the certificate. I saw that the AHRI certs that qualify for the IRA credit have a new "Potential Eligibility for IRA Tax Credit" on the upper right. But if the accountant is super strict, they would then look up the AHRI certificate number in the database, and verify whether it's CEE1 North or CEE1 South, or both. Two systems I'm interested in only meet the criteria for CEE1 North, not CEE1 South for California where I'm at.

My accountant is fairly strict, but he trusts me, so he'd probably just match model numbers on the contractor invoice with the AHRI cert I provide, and OK it based on that "Potential Eligibility" printed on the cert, without bothering to do the database lookup for North vs South. But if the model number on the invoice was incomplete, like just said "BOVA36" instead of "BOVA-36HDN1-M20G", he probably send me back to the contractor if even a single digit was out of place, to get a reprinted invoice. But the invoices, the AHRI certs, permits, photos of install - none of that goes to the IRS with your tax return filing, just Form 5695.

(Disclaimer: I'm not a professional tax advisor, please consult with your tax accountant or lawyer and don't trust anything I said...)

 

[evo9rs]

could you include those things (recipes of the device / machine) and pics of the install to proactively prevent audit?

 

[holeydonut]

could you include those things (recipes of the device / machine) and pics of the install to proactively prevent audit?

You can't proactively prevent an audit... you can only behave in a way that would make it easier to respond to the audit and hopefully pass it without penalties. What I dislike about this 5695 stuff is that the rules are vague an difficult to understand for dummies like myself. So even if you attempted to get your ducks in a row to conform with the tax code, they don't make it easy.

On the one hand the Tax form simply says a product has to conform with the V6 rules on Energy Star. This at face value isn't terribly helpful since V6 is somewhat complicated.

When you go to Energy Star's website, they basically keep telling you to "look for their Energy Star logo" that affects their geographic region. Again, this isn't terribly helpful because while the manufacturer may accurately apply the logo in general for a product line, they don't give the logo for the exact combination of features (horizontal sliders with argon gas?) on the specific product you installed through a licensed contractor.

And of course your licensed contractor will be like "wtf we can't help you with tax stuff hahahaha who do you think you're talking to?"

When you try to actually match specs like I did in this post, then you get the perspective from lensovet that the filer (me) shouldn't be doing this since the tax rules shouldn't be decided by individual interpretation.

Meh.

 

[wwu123]

You can't proactively prevent an audit... you can only behave in a way that would make it easier to respond to the audit and hopefully pass it without penalties. What I dislike about this 5695 stuff is that the rules are vague an difficult to understand for dummies like myself. So even if you attempted to get your ducks in a row to conform with the tax code, they don't make it easy.

On the one hand the Tax form simply says a product has to conform with the V6 rules on Energy Star. This at face value isn't terribly helpful since V6 is somewhat complicated.

When you go to Energy Star's website, they basically keep telling you to "look for their Energy Star logo" that affects their geographic region. Again, this isn't terribly helpful because while the manufacturer may accurately apply the logo in general for a product line, they don't give the logo for the exact combination of features (horizontal sliders with argon gas?) on the specific product you installed through a licensed contractor.

And of course your licensed contractor will be like "wtf we can't help you with tax stuff hahahaha who do you think you're talking to?"

When you try to actually match specs like I did in this post, then you get the perspective from lensovet that the filer (me) shouldn't be doing this since the tax rules shouldn't be decided by individual interpretation.

Meh.

TBH, I'm finding similar confusion wrt the efficiency qualifications for the heat pump. At the end of the day, it does boil down to specific performance metrics, e.g. SEER, SEER2, HSPF, sure everyone acknowledges that. But the IRA 25C section specifies those more categorically as "heat pumps that achieve the highest efficiency tier established by the CEE that is in effect", which again everyone would probably agree is CEE1 - South for California. But when you look up CEE Tier 1 criteria for 2023+, it only states that "a product must qualify as an Energy Star product". Then when you look at Energy Star requirements, finally we get to actual performance specs, for the ducted split heat pumps it states "15.2 SEER2, 11.0 EER2, 8.5 HSPF2".

So now here's the same rub you're encountering - we have the specifications as published by the manufacturers, and whether they surpass those critera. But they could lie, sure, so how to we "qualify" for Energy Star, and "achieve" the CEE Tier 1? So then we have AHRI certificates, which as exactly an industry "certification program" for accurate and unbiased evaluation of products, so you would think you could rely on the performance published for the cert, otherwise, what is it a certificate for, exactly. But we also have "Energy Star", which is a federal certification program, and now we also have "CEE Tier 1", which is yet another certification program - but both of these you also have to submit for certification, primarily using the AHRI certification as the proof, but you have to of course further submit, pay and complete the processes in certain timeframes. So what does it mean when there are so many heat pumps with AHRI certificates that meet the actual minimum perf specs above, but in the other two certification databases some don't have the CEE Tier 1 cert, some don't have Energy Star cert, many don't have both of them? To me, "qualified" is not the same as "certified", especially if there are three different certification programs for the same metrics, and stacking on the same conducted tests (by AHRI cert process).

Some websites say you MUST have the Energy Star certification, some say you MUST have the CEE Tier 1. It seems like those certainly make it more assured. But when you have a published AHRI certificate that shows the vendor can meet the criteria IF they submitted, but either hasn't yet submitted, or completed, or just won't bother for a particular product, is the product "qualified" but not "certified"?

And of course, the contractors will cite many an AHRI certificate that SOME customer did successfully file and receive their tax credit in previous years. But that really only reassures they weren't audited and challenged, and now we come back to @evo9rs' original question.

So for me, it really comes back to my relatively strict tax accountant, for whom no client has ever been audited, and whether he's OK with the broadest range of models with AHRI certis with evaluation-proven specs surpassing Energy Star, or whether he's going to want to see either the narrower subset of CEE Tier 1 certification or the Energy Start certification, or both, on top of AHRI, as the definitive proof...

EDIT: Just looked up that EPA administers Energy Star certification, while DOE (Dept of Energy) administers CEE according to one CEE spreadsheet they published) - in case anyone was curious why there are two separate govt certifications, that are the same currently by very definitions themselves. Moreover, the DOE says they don't even attest to the accuracy of what they publish, because they are "relying on manufacturers and their third-party representatives" (latter I think meaning the AHRI industry trade association and it's certification program/testing)

 

[holeydonut]

TBH, I'm finding similar confusion wrt the efficiency qualifications for the heat pump. At the end of the day, it does boil down to specific performance metrics, e.g. SEER, SEER2, HSPF, sure everyone acknowledges that. But the IRA 25C section specifies those more categorically as "heat pumps that achieve the highest efficiency tier established by the CEE that is in effect", which again everyone would probably agree is CEE1 - South for California. But when you look up CEE Tier 1 criteria for 2023+, it only states that "a product must qualify as an Energy Star product". Then when you look at Energy Star requirements, finally we get to actual performance specs, for the ducted split heat pumps it states "15.2 SEER2, 11.0 EER2, 8.5 HSPF2".

So now here's the same rub you're encountering - we have the specifications as published by the manufacturers, and whether they surpass those critera. But they could lie, sure, so how to we "qualify" for Energy Star, and "achieve" the CEE Tier 1? So then we have AHRI certificates, which as exactly an industry "certification program" for accurate and unbiased evaluation of products, so you would think you could rely on the performance published for the cert, otherwise, what is it a certificate for, exactly. But we also have "Energy Star", which is a federal certification program, and now we also have "CEE Tier 1", which is yet another certification program - but both of these you also have to submit for certification, primarily using the AHRI certification as the proof, but you have to of course further submit, pay and complete the processes in certain timeframes. So what does it mean when there are so many heat pumps with AHRI certificates that meet the actual minimum perf specs above, but in the other two certification databases some don't have the CEE Tier 1 cert, some don't have Energy Star cert, many don't have both of them? To me, "qualified" is not the same as "certified", especially if there are three different certification programs for the same metrics, and stacking on the same conducted tests (by AHRI cert process).

Some websites say you MUST have the Energy Star certification, some say you MUST have the CEE Tier 1. It seems like those certainly make it more assured. But when you have a published AHRI certificate that shows the vendor can meet the criteria IF they submitted, but either hasn't yet submitted, or completed, or just won't bother for a particular product, is the product "qualified" but not "certified"?

And of course, the contractors will cite many an AHRI certificate that SOME customer did successfully file and receive their tax credit in previous years. But that really only reassures they weren't audited and challenged, and now we come back to @evo9rs' original question.

So for me, it really comes back to my relatively strict tax accountant, for whom no client has ever been audited, and whether he's OK with the broadest range of models with AHRI certis with evaluation-proven specs surpassing Energy Star, or whether he's going to want to see either the narrower subset of CEE Tier 1 certification or the Energy Start certification, or both, on top of AHRI, as the definitive proof...

EDIT: Just looked up that EPA administers Energy Star certification, while DOE (Dept of Energy) administers CEE according to one CEE spreadsheet they published) - in case anyone was curious why there are two separate govt certifications, that are the same currently by very definitions themselves. Moreover, the DOE says they don't even attest to the accuracy of what they publish, because they are "relying on manufacturers and their third-party representatives" (latter I think meaning the AHRI industry trade association and it's certification program/testing)

Lol at least your installer knows how to get a AHRI certificate. Mine just said AHRI is online and I should google it. Finding the right combination of outdoor condensing unit, indoor furnace/air handler, and evaporator coil on that website is friggin tough. At least, it's difficult for DAMFs.

If I get audited and they ask for a AHRI certificate, I'm just going to attach this.

 

[wwu123]

@wwu123 There is an upcoming webinar on HEEHRA/HEERA

Understanding The Inflation Reduction Act’s Decarbonization Rebate Programs: HOMES, HEERA, and EBD - California Housing Partnership

Delve into the Home Electrification and Appliance Rebate (HEEHRA) Program and Home Efficiency Rebates (HOMES) program offered through the Inflation Reduction Act. With an anticipated $582 million for California, these programs incentivize new constructions and retrofits, offering substantial...

chpc.net

Keep us informed. We are also considering some of the options.

All the best,

BG

I was not able to attend the webinar live, but I did register and they did helpfully offer download links for the slides. Most of Part 1, 2, 3 more relevant to builders of affordable and multi-family housing, but a small slice of Part 3 was about HEEHRA that was fairly agnostic to single-family homeowners, though mixed in with another IRA program called HOMES (that is efficiency perfomance-based). But basically for California for HEEHRA/HOMES:
-California eligible for $290 million for HEEHRA, out of the total federal money allocated - this goes to not just heat pumps but the other improvements like insulation (however, the largest part of individual rebate is $8000 max for heat pump, vs $6000 for all else.
-California is one of the first states to submit for to feds for HOMES/HEEHRA (slide suggests only other states are Hawaii, New Mexico and New York so far)
-Once fed provides feedback, California CEC holds public workshop in Mar-Apr 2024 timeframe for HEEHRA
-HEEHRA program goes into effect later in 2024 (another slide suggests late 2024)
-no details on California's proposal to fed in slides, nor on CEC website - but slides suggest California often goes beyond federal requirements - e.g. could demand more stringent efficiency/perf requirements than current IRA requirements for existing 25C $2K tax credit program).

If California goes beyond the federal efficiency requirements, that's noble, but I see another level of headache for installers, homeowners, and tax preparers to figure out what equipment qualifies. Because again the AHRI database lists some raw perf specs by equipment, but there would be no Energy Star+ or CEE Tier 1+ certification to make a simple checkmark....

Anyways, finding it may be hard to retrofit an inverter heat pump that is even eligible for the 25C $2K tax credit, let alone the local/regional rebates or any stretch goals CA may implement for HEEHRA. Will summarize and share later....