HVAC OEMs Help Contractors Cash in on IRA Incentives

According to a recent study by The NEWS, public awareness of the billions of dollars in incentives available through the Inflation Reduction Act (IRA) remains low, with nearly 66% having no knowledge of or familiarity with the IRA’s HVAC incentives. This poses a challenge for HVAC contractors looking to sell more products with the help of these consumer incentives.

To address this issue, HVAC manufacturers are stepping in to support their contractor-dealers with an array of tools and resources, including rebate calculators, marketing materials, training opportunities, and dedicated websites. With these resources, contractors can educate consumers about available incentives and confidently incorporate the various IRA rebates and tax credits into their sales presentations.

Carrier

Carrier is offering several resources that are designed to help contractors navigate and maximize the various rebates and credits available under the IRA and other state and local opportunities, said James Momperousse, energy and utilities sales manager at Carrier.

“All these resources make kitchen table conversations easier and empower contractors to correctly identify just how much a homeowner can expect to benefit.”

These resources include a federal rebates landing page, which breaks down the anticipated 25C tax credit that homeowners can anticipate receiving depending on the system, SEER2/EER2/HSPF2 rating, and more. Carrier also provides a rebate center website that pulls in the available rebates and tax credits per product, per zip code. The “up to $ in rebates” dropdown displays where the rebates are coming from, the purchase and claim date criteria, and what homeowners need to do to qualify (e.g., using a participating dealer or a local utility program). According to Momperousse, it’s a one-stop shop to help correctly predict how much a homeowner can benefit.

“Carrier also offers the EcoHome Program, which features strategic financing options available only through Carrier’s network of experienced dealers,” said Momperousse. “For qualified buyers, this new program offers low-rate financing on eligible high-efficiency products. Consumers may also qualify for additional savings with Carrier’s Cool Cash seasonal program, offered by most Carrier factory-authorized dealers.”

Johnson Controls

Today’s homeowners have access to an unprecedented number of rebates and incentives to reduce the cost of high-efficiency home comfort systems, said Ken North, director of channel development and strategy at Johnson Controls.

NAVIGATING OPTIONS: By educating customers before and during the sale, contractors can help homeowners navigate their options. (Courtesy of Johnson Controls)

“For contractors, these programs present a tremendous opportunity for sales growth. By educating customers before and during the sale, contractors can build an advisor relationship with homeowners who may need help navigating their options.”

To assist in this process, Johnson Controls has developed a web-based resource hub available to both contractors and homeowners. In their Inflation Reduction Act Guidebook, contractors will find a straightforward reference for all currently available programs, said North. The guide details federal tax credit programs, links to a local savings database, outlines product eligibility, and provides strategies to maximize cost-savings such as stacking incentives with utility and manufacturer rebates.

“We understand that some homeowners may feel these programs are out of reach because of the initial investment cost,” said North. “To help contractors overcome this challenge, we’ve simplified our financing options with a quick application process and programs that offer homeowners fixed monthly payments.”

North added that many homeowners start their buying journey with online research, so it’s important for contractors to leverage their expertise even before a customer steps through the door. To that end, Johnson Controls has equipped its partners with web- and social media-ready content that can be easily branded and leveraged as part of their marketing strategy.

“Contractors can also enhance their sales skills and high-efficiency system knowledge with courses available through Ducted Systems Academy,” said North. “This state-of-the-art training offers a suite of virtual and in-person classes designed to help contractors navigate challenging sales situations and hone their knowledge of IRA-eligible, high-efficiency equipment.”

Lennox

“Since the enactment of the IRA in 2022, Lennox has continued to be a leading provider of dealer education and tools that ensure dealers and homeowners are receiving maximum incentives available under the IRA, by providing innovative, energy-efficient, home comfort solutions and subsequent savings,” said Valerie Mastalka, director of loyalty and promotions at Lennox.

PROPER TOOLS: Lennox provides dealers with all the education and tools needed to maximize homeowner incentives under the IRA. (Courtesy of Lennox)

For example, the LennoxPros.com website serves as a live resource for dealers to access tax credit certificates, information on the Home Improvement Credit, as well as the 2023 HVAC Tax Credit Amendment. The Lennox Rebate Center also offers dealers and homeowners current information on the High-Efficiency Electric Home Rebate Program (HEEHRP) and the Energy Efficient Home Improvement Tax Credit (25C) through the third-party platform EcoRebates. It also explains how these tax credits apply to Lennox products.

“These resources can help dealers and homeowners maximize their benefits when purchasing qualifying Lennox products,” said Mastalka. “Lennox also hosts their annual conference, Lennox LIVE, to educate HVAC dealers on available rebates, incentives, and resources available to homeowners as well as the latest industry technologies and insights.”

Mitsubishi Electric Trane HVAC US (METUS)

METUS is focused on educating contractors, homeowners, and anyone in the HVAC industry about the benefits of heat pumps and the resources available — like tax incentives and rebates — to make installation a reality, said Michelle Robb, senior director of growth excellence at METUS.

HEAT PUMP BENEFITS: METUS is focused on educating contractors and homeowners about the benefits of heat pumps, as well as the available tax incentives and rebates. (Courtesy of Mitsubishi Electric Trane HVAC US)

“We are creating toolkits for contractors, designed to help them communicate the benefits of heat pumps and planned IRA incentives to consumers,” she said. “METUS has also dedicated a section on our website to inform about available tax incentives through the Inflation Reduction Act. It provides up-to-date information related to the program, including the benefits of installing all-climate, all-electric heat pump solutions.”

For contractors who are concerned about carrying a loan while waiting to be reimbursed under the IRA, financing programs are available to help bridge the gap and ensure timely reimbursement. For example, both eli and National Energy Improvement Fund (NEIF) offer contractor financial programs, a rebate bridge, and factoring, which ensures contractors receive their payment — minus fees — within a week of job completion, said Robb.

“METUS is also working with a financial institution to set up low-cost loans for members to bridge the cost gap if needed. This group works primarily with low-to-moderate-income households and strives to increase energy efficiency.”

As part of its broader mission, METUS is also focused on training installation contractors to meet the growing demand for electrification. For example, METUS holds regular meetings with distributors and contractors in California, a leader in energy-efficient heat pump installations, to share information about available incentives and learn how they are being implemented.

Robb also noted that METUS recently received the Department of Energy’s (DOE’s) Energy Skilled recognition for its Residential Heat Pump Installation and Comfort Advising training program. This designation affirms METUS’s commitment to reducing fossil fuel use and supports contractors in helping homeowners make energy-efficient, environmentally friendly updates.

Trane

Trane offers a suite of tools to help dealers navigate and maximize the various rebates and tax credits available under the IRA, said Josef Hejda, electrification commercialization leader at Trane. He noted that these resources are designed to streamline the process of identifying, applying for, and stacking rebates and tax credits, to help dealers fully leverage the financial incentives available.

PROPOSAL BUILDER: Trane dealers have access to a proposal builder tool that helps them create detailed proposals for their clients. (Courtesy of Trane)

For example, dealers have access to a proposal builder tool that helps them create detailed proposals for their clients.

“This tool includes information on eligible equipment, potential energy savings, and available rebates and tax credits,” said Hejda. “By incorporating this information into their proposals, contractors can provide a clear picture of the financial benefits to their clients.”

Contractors also have access to training sessions and educational materials from Trane to help them understand the specifics of the IRA and how to utilize the available rebates and tax credits, said Hejda. These programs cover topics such as eligibility requirements, application processes, and best practices for maximizing incentives.

Trane’s Dealer Calculator tool, developed in conjunction with dealers, enables contractors to easily identify and compare systems that qualify for incentives and use custom inputs, like pricing, to help develop their selling approach, added Hejda. The tool also provides visibility to different scenarios, keeping homeowner price and profitability in mind.

In addition, Trane offers marketing materials to help contractors promote energy-efficient HVAC systems, as well as the available rebates and tax credits. The Trane Offers, Rebates, and Tax Credit webpage gives customers access to incentive details, manufacturer certificates, and guidance on claiming the 25C Tax Credit.

“By leveraging these tools and resources, contractors can more effectively navigate the complex landscape of rebates and tax credits under the Inflation Reduction Act, ultimately providing greater value to their clients and growing their businesses,” said Hejda.