The Budget of Florida Incorporates HVAC Rebates from IRA



The Florida Legislature has approved a $117.5 billion 2024-2025 budget plan that allocates over $346 million for the Inflation Reduction Act’s (IRA) Home Efficiency Rebates and the Home Electrification and Appliance Rebates. Under the IRA, the rebates are designed to encourage the installation of higher-efficiency HVAC systems and home upgrades that lead to energy savings. However, Florida Governor Ron DeSantis must decide whether to accept the federal funds, with a decision expected following an in-depth review of the appropriations included in the budget plan.

Florida Residents Poised for Higher-Efficiency HVAC System Rebates Under Inflation Reduction Act

“The Inflation Reduction Act is a down payment on the clean energy future we deserve, empowering working people to afford the transition to clean energy” – Rep. Maxwell Alejandro Frost, D-Fla.

Florida residents might finally benefit from federal rebates for upgrading to higher-efficiency HVAC systems and enhancing energy efficiency at home.

The $117.5 billion budget plan for 2024-2025 approved by the Florida Legislature in March sets aside $346 million under the Inflation Reduction Act (IRA) for Home Efficiency Rebates and Home Electrification and Appliance Rebates.

Now, the decision lies with Florida Governor Ron DeSantis to accept or reject this federal funding for the next fiscal year starting in July. DeSantis, an ex-U.S. congressman and 2024 Republican presidential nomination candidate until January, hasn’t commented directly on the IRA rebate funding.

“The governor will review each specific appropriation… and issue his final action following a detailed review of each item,” said spokeswoman Julia Friedland.

The IRA’s Home Electrification and Appliance Rebates offer direct-to-consumer payments for qualifying high-efficiency HVAC appliances, including a $8,000 rebate for a heat pump. It also covers cost for necessary electrical upgrades. The Home Efficiency Rebates are for HVAC equipment installations and home upgrades that result in energy savings.

The electrification and appliance rebates are for households with income up to 150% of the local median income, while the efficiency rebates are available to all income levels.

The rebate programs will be supervised by the U.S. Department of Energy (DOE) but administered by individual states and U.S. territories.

Currently, only five states including California, New Mexico, New York, Hawaii, and Indiana have applied for the rebate funding. Applications will be approved by the DOE before any funding is awarded. States and territories have until August 16, two years post the IRA’s enactment, to apply for the rebate programs or their allocations will be redistributed.

However, House Resolution 6536, introduced by U.S. Reps. Maxwell Alejandro Frost, Darren Soto, Kathy Castor, Lois Frankel, and Jennifer González Colón, aims to grant rebate program control to local communities in states where the state government declines the funding.

“Governor DeSantis’ decision to block federal dollars to help Florida families adopt clean energy shows we cannot rely on our state leadership to help us combat the climate crisis, but we won’t take no for an answer,” Frost stated in a press release.

The bill is presently under review in the House Committee on Energy and Commerce’s subcommittee on energy, climate, and grid security.

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