Johnson Controls, the global leader for smart, healthy and sustainable buildings, announces a new resource program to help residential HVAC distributors and contractors navigate savings incentives available to residential customers from clean energy programs, including the recently passed Inflation Reduction Act.
With a record $370 billion reserved spending on climate and energy initiatives and a carbon reduction goal of 40% by 2030, the Inflation Reduction Act places a strong focus on providing the American homeowner with a more affordable path to higher-efficiency home comfort. However, maximizing these incentives in conjunction with other federal tax credits, rebates and low-cost financing options can be a challenge, making HVAC professionals’ education and participation vital to the initiative’s success.
“The Inflation Reduction Act incentives present an immediate opportunity to begin a conversation about increasing sustainability in a more affordable way. But it doesn’t stop there,” said Charles Hurd, director of residential product management, Global Ducted Systems, Johnson Controls. “Improved system operation, reduced operational costs and affordable financing are all important components to increasing long-term energy efficiency and reducing customers’ carbon footprint. Johnson Controls is and will continue to serve as a trusted advocate to our distributor and dealer partners to ensure they are poised to best serve homeowners – while increasing their premium equipment sales opportunities.”
Programs to Maximize Savings on Energy-Efficient HVAC Systems:
- Energy-Efficient Home Improvement Credit: The 25C tax credits, which expired on December 31, 2021, have been extended through December 31, 2022, at the previous credit levels and requirements. Beginning with products installed on January 1, 2023, and extending through the end of 2032, new energy tax credits will be available for qualifying equipment, including tax credits up to 30% of eligible expenses or up to $600 per appliance and $1,200 per year (up from 10% and $500 lifetime) and up to $2,000 per year for heat pumps.
- High-Efficiency Electric Home Rebate Program: $4.3B will be available for grants to states to provide rebates for qualified home electrification projects. The grants will provide up to 100% of eligible expenses or up to $8,000 in rebates for eligible households to install heat pumps. Funds will be administered through state energy offices and will run through September 30, 2031.
- State and Local Rebate Programs: Rebates offered through state legislation, local municipalities and utility companies can vary. It’s best for homeowners to speak to their local HVAC professional about these rebates or use a zip code-based HVAC savings database as a point of reference.
- Manufacturer Rebates and Financing Options: With high-efficiency equipment rebates from Johnson Controls, more than 30 consumer financing options through Synchrony® Financial, factory-backed warranties and new Inflation Reduction Act incentives, there has never been a better time to upgrade to a new home comfort system.
As part of a long-standing commitment to sustainability, Johnson Controls will manage resource programs for channel partners. Efforts are focused on homeowner education and contractor sales support, including training opportunities to increase knowledge of incentive programs, higher-efficiency equipment and system installation, as well as strategies for bundling federal, state, local, utility and manufacturer incentives to maximize savings. In addition, information on high-efficiency equipment rebates from Johnson Controls, more than 30 consumer financing options through Synchrony® Financial and factory-backed warranties will be made available along with homeowner-focused communications to increase awareness and drive traffic to YORK®, Luxaire®, Coleman®, Champion®, Fraser-Johnston®, Guardian® and Evcon™ dealers. Additional resources will be evaluated and made available as the Inflation Reduction Act evolves and new programs emerge.
Since 1885, sustainability has been at the heart of the company’s business and is fundamental to all facets of Johnson Controls. In 2021, Johnson Controls announced a commitment to reduce absolute Scope 3 emissions by 16% and Scope 1 and 2 by 55% before 2030. The company has also committed to invest approximately 75% of new product R&D in climate-related innovation to develop sustainable products and services, such as transitioning to low-GWP refrigerants and innovations in electric heat pump technology, to achieve efficient performance even during harsh winter months. In addition to helping customers achieve their net zero goals, Johnson Controls is continuing to take significant steps to further improve its environmental impacts through ambitious sustainability commitments, including a net zero carbon pledge by 2040.
If you have questions or want to learn more about growing your high-efficiency equipment business, distributors can contact their regional sales manager, and contractors should contact their distributor partner.