Looking for Inflation Reduction Act rebates to go green? Get ready to wait

Many Inflation Reduction Act rebates on green technology, such as heat pumps and induction stoves being installed in homes in this Riverside subdivision, went into effect Jan. 1, but homeowners must wait as states work out their distribution programs. For Americans with a New Year’s resolution to trade in their gas furnace or water heater for climate-friendly heat pumps, a word of caution: Generous Inflation Reduction Act rebates for home electrification took effect on Jan. 1, but they won’t actually be available to homeowners until year’s end or 2024 at the earliest, according to the U.S. Department of Energy. It adds: “The law does not authorize states to offer home electrification rebates retroactively.” The Inflation Reduction Act also includes a $2,000 federal tax credit for heat pumps, which can be taken now. California, the nation’s largest market for heat pumps and heat pump water heaters, is just beginning a lengthy undertaking to establish its own Inflation Reduction Act rebate program, a procedure that includes holding public workshops. “Rebates are anticipated to be available to consumers in 2024.” The complexity of implementing Inflation Reduction Act rebates could prove a deterrent for the contractors needed to handle electrification upgrades, said Nate Adams, a home electrification expert and chief executive of HVAC 2.0, which helps contractors optimize their installation business.