rebate income determination

[anonymous17]

the inflation reduction act includes rebate provisions that are based on income.  how will that income be determined? e.g. for a heat pump installed in 2023, will it be my 2023 income that matters or my 2022 income?

[johnd84]

Hi there. Thanks for your question! 

The rebates and income amounts are state specific. I'm assuming it's for 2023 income. Could you tell me what state you're in? https://https://www.consumerreports.org/appliances/heat-pumps/heat-pump-federal-tax-credits-and-stat... 

[anonymous17]

i would be happy with an answer which applies to any state. but texas would be the most helpful.
in any case, i believe heat pump rebates are subject amounts and income limits at the federal level regardless of which state you're in as per this section of the bill:
https://www.congress.gov/bill/117th-congress/house-bill/5376/text#H4D43FABFB4F9495C8A601D9A2C780ADC

i can quote the key points:
(c) High-Efficiency Electric Home Rebate Program.—
(ii) not more than $8,000 for a heat pump for space heating or cooling; and

(A) in the case of an eligible entity described in subsection (d)(1)(A)—

(i) 50 percent of the cost of the qualified electrification project for a household the annual income of which is not less than 80 percent and not greater than 150 percent of the area median income; and