The HVAC industry is preparing for increased interest in high-efficiency products, such as variable-speed compressors and heat pumps, following the passage of the federal Inflation Reduction Act (IRA).
The IRA, passed in both houses of Congress and signed into law by President Joe Biden in August, includes a number of HVAC-related energy efficiency incentives billed as ways to curb greenhouse gas emissions and thus combat climate change. Expired tax credits for homeowners and home builders who take specific energy-saving measures were renewed and made retroactive; those credits, plus a tax deduction for the owners of commercial buildings retrofitted to meet defined energy-savings goals, will be enhanced beginning in 2023.