Some details are becoming more clear regarding the 2022 Inflation Reduction Act and how it pertains to the HVAC industry. As part of the package, the 25C federal tax credit has been expanded & extended. Effective January 1, 2023, new air conditioners that reach 16 SEER2 / 12 EER2 qualify for up to $600 in tax credits; 97% gas furnaces qualify for up to $600 in tax credits; heat pumps that reach 15.2 SEER2 / 10 EER2 / 8.1 HSPF2 are incentivized with a credit of 30% of the project's cost up to $2000 in tax credits; and mini split heat pump systems that reach 16 SEER2 / 9 EER2 / 9.5 HSPF2 qualify for up to $2000 in tax credits. SEER2 / EER2 / HSPF2 is the new more stringent rating system for air conditioners and heat pumps to better reflect real world conditions. Also, the $500 lifetime limit for the federal 25C tax credit has been eliminated. Homeowners can now qualify for a credit annually by installing qualifying energy saving doors, windows & insulation in addition to installing qualifying HVAC equipment through 2032. Another part of the IRA that is to come is the High Efficiency Electric Home Rebate program (HEEHRP) which will have household income limitations. This program isn't expected to become active until the fourth quarter of this year.