zlacker

>>PaulHo+(OP)
Related, TIL the US is effectively banning residential electric resistance water heaters in 2029, with heat pump water heaters being the only type that can meet the new standards. Users will see a 2-3x in cost difference and a 3 to 8 year payback on savings.

>>hnburn+tR
This is exactly the kind of thing government is for, even though it's missing the other half: subsidies. At the very least buying heat pumps for the next 5 years should be tax deductible. Even better: a $2000 or similar rebate.

>>amazin+Jb1
That's probably exactly what will happen.

    Energy property - Heat pumps and biomass stoves and boilers

    Heat pumps that meet or exceed the CEE highest efficiency tier, not including any advanced tier, in effect at the beginning of the year when the property is installed, and biomass stoves and boilers with a thermal efficiency rating of at least 75% qualify for a credit up to $2,000 per year. Costs may include labor for installation.

    Qualified property includes new:

    Electric or natural gas heat pumps
    Electric or natural gas heat pump water heaters
    Biomass stoves and boilers

https://www.irs.gov/credits-deductions/energy-efficient-home...

>>Dangit+8d1
These are credits that only work if you have owe federal taxes and they cannot be carried forward. I've seen estimates that 40-45% of taxpayers owe 0 or close to 0.

>>hnburn+le1
Eh? If you have income you owe taxes, Uncle Sam just takes it before you even see it

>>mrd999+NG1
They are right, tax credits can't reduce your tax burden below 0 so this incentive does nothing for very low income families.