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HVAC ContractingNewsRegulatory UpdateInflation Reduction Act

Florida Budget Includes IRA’s HVAC Rebates

DeSantis, who rejected the federal money last year, faces another decision about it

By Matt Jachman
Ron DeSantis
BUDGET DECISION: Florida Gov. Ron DeSantis, who dropped out of the Republican presidential race in January, must again decide whether to accept federal Inflation Reduction Act rebate money for residents who want to install higher-efficiency equipment and better home insulation. (File photo)
March 30, 2024
“The Inflation Reduction Act is a down payment on the clean energy future we deserve, empowering working people to be able to afford to make the transition to clean energy.”
- Rep. Maxwell Alejandro Frost
D-Fla.

There might be a pot of gold, after all, for people in Florida who want to take advantage of federal rebates to install higher-efficiency HVAC systems and tighten up their homes against energy losses.

The nearly $117.5 billion 2024-2025 budget plan approved by both houses of the Florida Legislature on March 8 earmarks the state’s allotment under the Inflation Reduction Act (IRA) — more than $346 million — for the IRA’s Home Efficiency Rebates and the Home Electrification and Appliance Rebates.

Now, Florida Gov. Ron DeSantis, whose veto last year of funding for the administration of the rebates signaled their demise in the state, must decide whether to accept the federal dollars for Florida’s next fiscal year, which begins in July.

DeSantis, a former U.S. congressman in his second term as governor, was a candidate for the 2024 Republican presidential nomination but dropped out of that race in January.

DeSantis’ office didn’t respond directly to questions regarding the IRA rebate funding.

“The governor will review each specific appropriation included in the 2024-2025 General Appropriations Act and will issue his final action following a detailed review of the merits of each item,” a spokeswoman, Julia Friedland, said in an email.

The IRA’s Home Electrification and Appliance Rebates, totaling $4.5 billion, are direct-to-consumer payments for the purchase of qualifying high-efficiency HVAC appliances, including up to $8,000 for a heat pump. The program also provides rebates for the electrical work, such as panel upgrades, that some homes may need to accommodate such appliances. The Home Efficiency Rebates, totaling $4.3 billion, are for the installation of qualified high-efficiency HVAC equipment but also for home upgrades, such as insulation and new windows, that lead to measurable energy savings.

Looking for quick answers on air conditioning, heating and refrigeration topics? Try Ask ACHR NEWS, our new smart AI search tool. Ask ACHR NEWS →

The electrification and appliance rebates are for those with household incomes of up to 150% of the official median income in their area, while the home efficiency rebates are for households at all income levels.

The U.S. Department of Energy (DOE) is supervising the rebate programs, but states and U.S. territories are to be in charge of their day-to-day administration.

So far, only five states, California, New Mexico, New York, Hawaii, and, most recently, Indiana, have applied for rebate funding. Applications will be approved by the DOE before any money is awarded. States and territories that have not applied have until Friday, August 16 — exactly two years after the IRA was signed into law — to notify the DOE of their intention to do so. Under the current law, states and territories where officials choose not to participate in the rebate programs will have their allocations redistributed to those that are participating.

However, five members of Congress aim to give control of the rebate programs to local communities in states where the state government rejects the money.

House Resolution 6536 was introduced late last year by U.S. Reps. Maxwell Alejandro Frost, Darren Soto, Kathy Castor, Lois Frankel, all Democrats of Florida, and Jennifer González Colón, a Republican of Puerto Rico. The measure would give local governments the authority to receive grants for both rebate programs “in States in which the applicable State energy office is not carrying out such a program.”

“The Inflation Reduction Act is a down payment on the clean energy future we deserve, empowering working people to be able to afford to make the transition to clean energy,” Frost said in a press release. “Governor DeSantis’ harmful decision to block hundreds of millions of federal dollars to help Florida families adopt clean energy makes it clear we cannot count on our state leadership to help us fight the climate crisis but we won’t take no for an answer.”

The bill is currently in the House Committee on Energy and Commerce, where it was assigned to a subcommittee on energy, climate, and grid security.

KEYWORDS: Electrification energy efficiency energy efficiency program rebates for HVACR

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Matt jachman

Matt Jachman is an editor at the ACHR NEWS. He has 30-plus years of experience in community journalism and a bachelor’s degree in English from Wayne State University in Detroit.

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