Breaking down the IRA for Trade Professionals
See how you can benefit from this new legislation that will help electrify America.
READ ARTICLEUnderstand the incentives for a once-in-a-generation opportunity
The Inflation Reduction Act (or IRA) provides billions of dollars through a series of tax credits, rebates and grants — much of which will flow through contractors — to help American consumer homes become electrified and more energy efficient.
Earn significant savings and help protect the future
This funding will make heat pumps, solar panels, smart thermostats and other intelligent upgrades the smarter choice for millions of households across the country.
Contractor installing Pro-IQ™ DiagnostIQ helping a home save energy
Latest Updates
The IRA program is still being developed.
When will rebates and tax credits be ready for homeowners, contractor or builder?
Consumer rebates won’t be ready until 2024 and will vary by region. Tax credits will start to be available in Q3 of 2023.
What can businesses do while waiting for things to get ready?
Look into local utilities rebate programs and look for opportunities to stack rebates and credits together. Also take this time to educate possible homeowners on all these benefits so they can prepare to make updates.
| T10 Pro Smart Thermostat with RedLINK® includes room sensor |
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| VisionPRO® 8000 with RedLINK® Multi-stage Thermostat |
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| T6 Pro Smart Thermostat Multi-Stage 3 Heat/2 Cool |
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| YTHX9421R5101WW Basic Prestige Kit plus wireless outdoor sensor |
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| T6 Pro Z-Wave® Thermostat |
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| WiFi 9000 Color Touchscreen Thermostat |
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| VisionPRO® 8000 WiFi Programmable Thermostat |
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Savings are available on almost every job
Explore all the possible incentives available to your business.
| Name and type of incentive |
What does it do? |
|---|---|
| Conduct energy audits on homes | The Inflation Reduction Act can offer $150 for qualified Pros to conduct home energy audits* LEARN MORE |
| ENERGY STAR upgrades | HVAC pros and builders can get direct money back for meeting ENERGY STAR program requirements for singlefamily, manufactured, and multi-family homes — up to $2,500 per single-family new home* LEARN MORE |
| Home Energy Efficient Contractor Training GRANTS |
This gives the States $200 million to develop and implement contractor training programs |
| High-Efficiency Electric Home (HEEHR) REBATES |
Contractors can earn an up to $500 rebate per qualifying HEEHR project |
| Home Owner Managing Energy Savings
(HOMES) REBATES |
Contractors can earn a $200 rebate per qualifying HOMES project |
| High-Efficiency Electric Home (HEEHR) REBATES |
Up-front discounts for qualified LMI electrification projects, up to $14,000 per unit |
| Home Owner Managing Energy Savings
(HOMES) REBATES |
Rebates for modeled or measured energy savings, up to $8,000 for LMI households and $4,000 per unit otherwise |
| 25C Residential Energy Efficiency TAX CREDIT |
Consumers can get a 30 percent tax credit for select upgrades, including up to $2,000 annually for heat pumps or heat pump water heaters |
| 45L New Energy Efficient Home CREDIT |
Contractors can get up to $5,000 per unit for new construction or major retrofits |
| 179D Energy Efficient Commercial
Buildings Deduction TAX CREDIT |
Contractors can get up to $5 a square foot for reductions in energy costs or energy use intensity |
Explore this IRA Guide for more information
Use this calculator for IRA insights that account for your location
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*These values are estimates. The rebates may be implemented differently in each state, so we cannot guarantee final amounts, eligibility, or timeline. And without additional appropriations from Congress, the rebate programs will end once their initial IRA funding is exhausted. Taz credits can only be used to offset your federal taxes owed, which we estimate but do not know. ** The IRA’s prevailing wage provision applies, and the contractor must earn the prevailing wage in order for the company to earn these tax benefits. Prevailing wage refers to the amount particular classification of laborer in geographic area as determined by the Secretary of Labor.