@Yoyoguy
It’s very difficult because you have to read the entire section of the act from page 338 through 351 and you have to cross reference back to the current law section 25C.
After the sentence you quoted, it also says this:
EXTENSION OF CREDIT.—The amendments made by subsection (a) shall apply to property placed in service after December 31, 2021.
Section a is the extension of the expiration date only. So the combination of the two statements seems to indicate to me, that the credit is extended as is (10% and $500 lifetime maximum) retroactive to January 1, 2022. However, the enhanced credit of 30% with a $1200 (or $2000) annual limit is effective on January 1, 2023.
This is actually pretty sensible, because it gives people and the IRS time to plan, and reverse is a trend of Congress making huge changes to the tax laws retroactively. However, if I read it correctly, you will want to hold off installing a new heat pump until next year, if you can.
I am not a tax attorney, and you should wait for more authoritative explanations.
