While the Inflation Reduction Act (IRA) will provide billions in consumer rebates for high-efficiency residential HVAC equipment and energy-saving home improvements, the enhanced tax credits for similar measures — particularly the so-called 25C credits — will be a game-changer for contractors this year, according to two regulatory experts.
The IRA’s rebates are months away, even under the best circumstances, while its tax credits are available now, said Dana Fischer, director of regulatory strategy at Mitsubishi Electric U.S., during a recent webinar for contractors. The 25C credits, named for the section of the tax code in which they’re defined, apply to certain HVAC equipment, such as heat pumps, as well as to the installation of energy-saving building components.