When will state-administered heat pump rebates be available?

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Mooderator
Staff member
Hearth Supporter
Nov 18, 2005
105,151
South Puget Sound, WA
As part of the IRA a state-administered, income-related rebate program was mentioned. The states are waiting for DOW guidance. Specifically, it stated:
  • If your household income is less than 80 percent of your state’s median household income, you are eligible for 100 percent of the rebates available. So if you spend $10,000 on a heat pump and a heat pump water heater, you could get $9,750 back, depending on the specifics of your state’s rebate program.
  • If your household income is 80 percent to 150 percent of your state’s median income, you are eligible for 50 percent of the rebates available. So for a $10,000 heat pump and heat pump water heater, you could get $4,875 back, depending on specifics.
  • If your household income is more than 150 percent of your state’s median income, you are not eligible for these rebates
I recall it being said that it would take a while to set these programs up. Has the DOE issued guidance? Does anyone know of progress here? If so, when will they be available?
 
According to WA State Dept. of Commerce, this should start happening late 2023 or at the beginning of 2024.
 
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How is somebody making <80% of the median income supposed to put $10k out and wait for it to return in taxes? NYS has a median income of $75k, but that’s thrown off by the city. My county has a median income for a family of 4 of $44k/year. I’m not sure how they make ends meet. I’m sure it’s social programs of some sort.
 
How is somebody making <80% of the median income supposed to put $10k out and wait for it to return in taxes? NYS has a median income of $75k, but that’s thrown off by the city. My county has a median income for a family of 4 of $44k/year. I’m not sure how they make ends meet. I’m sure it’s social programs of some sort.
The idea was for point of sale rebates. That why states are handling the money.
 
I think Florida has refused to participate in the program at this point. From what I have been able to read the implementation date for many states will vary considerably. The goal is to try to avoid the level of fraud that popped up during Covid loan programs. No doubt that are going to be lot of folks waiting to get their hands on "free government money"
 
The idea was for point of sale rebates. That why states are handling the money.

That would certainly be better. The income verification process would be tricky.
 
That would certainly be better. The income verification process would be tricky.
For those that file taxes, all you will need is a copy of last years return. For those that don’t well they probably qualify. Now for those that say they didn’t file there will probably be a way to check. The IRS knows…. The trickier thing will the the energy improvement money. Modeling based or actual energy use decreases have been talked about.

I wonder what impacts it will have on the HVAC industry, and the quality of work performed. Right now I don’t have a very high opinion of them. Maybe this helps by offering more jobs that are fairly bid? Instead of a race to the bottom/cheapest bid they can offer a fair bid for quality work and get the job instead of being under bid by a sloppy cut rate company.
 
That would certainly be better. The income verification process would be tricky.
Yes. Setting up contracts to manage the process is what is taking time. This type of verification is done locally if an income-based property tax reduction is requested. Usually, it requires submitting a copy of the first page of the tax return.