We asked the experts: What’s next for IRA funding?
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In the latest edition of ACCA’s Codes and Coffee, which took place right before the administration changed on January 20, industry experts discussed the evolving landscape of Inflation Reduction Act (IRA) rebates, the ongoing collaboration with federal and state energy offices, and ACCA’s initiatives to support contractors during this transition.
ACCA manager of codes and standards David Bixby and director of technical services Wes Davis welcomed a lively panel to provide updates on where the IRA stands now and where it’s headed once the Trump administration takes office.
The full panel included:
- Cheryn Metzger, residential program manager, Pacific Northwest National Laboratory (PNNL)
- Eric Woerner, vice president, A1 Mechanical of Dayton, Co-Chair ACCA Technical Committee
- Edward (Ed) Lehr, director, Jack Lehr Heating, Cooling & Electric, Vice Chair, ACCA Codes Subcommittee
- Sean Robertson, ACCA, vice president, membership, advocacy, and events
Here’s what you missed:
Understanding IRA rebates: What’s in it for contractors?
Metzger opened the discussion by detailing the IRA’s two major rebate programs, which collectively allocate $8.8 billion to promote energy efficiency and electrification. These programs aim to make sustainable upgrades accessible to homeowners, highlighting the importance of supporting contractors in delivering quality installations:
- Home Efficiency Rebates (HER): These rebates are determined by measurable improvements in energy efficiency. State programs define the maximum rebate amounts, but homeowners can receive up to $8,000 for low-income households or $4,000 for others, with a cap of $400,000 for multifamily buildings.
- Home Electrification and Appliance Rebates (HEAR): This program assists low- to moderate-income households in adopting energy-efficient technologies like heat pumps, electric stoves, and water heaters. More than 70% of U.S. households are eligible, with rebates capped at $14,000 per household.
Metzger noted that while the opportunities are vast, they come with the challenge of navigating state-level implementation and ensuring contractors have the tools and resources to succeed. States like California, Arizona, Colorado, and New Mexico are among those where rebates are already available, while others have been awarded funds or submitted applications to implement these programs.
Pain points and incentives for contractors
Metzger acknowledged the potential administrative and technical burden on contractors. To mitigate these challenges, the Department of Energy (DOE) and the Pacific Northwest National Laboratory (PNNL) have developed resources to simplify processes and support contractors:
- Training modules: These critical tools help contractors explain available incentives to homeowners, ensuring clear communication about program benefits.
- DOE tools for contractors: A robust suite of decision tools and guides helps streamline installations and maintain quality standards. Examples include the Retrofit Decision Tool, the Cold Climate Heat Pump Decision Tool, and documentation for ensuring quality installations.
- Workforce credentialing: DOE’s Trek Program and Energy Skilled credential initiative aim to prepare contractors for high-performance HVACR equipment installations. Recognized credentials cover areas like heat pump installation, heat pump comfort advising, water heater installation, and home energy assessments for single-family and multifamily properties.
During the discussion, a key question from attendee David Lamb addressed the interplay between state rebates and IRA-funded programs. Metzger explained that the goal is for federal rebates to complement existing utility rebates, providing homeowners with multiple layers of savings. However, safeguards prevent homeowners from receiving more in rebates than they spend on upgrades. The ultimate aim is to make energy efficiency upgrades affordable—especially for low-income households—through seamless coordination of available incentives, tax credits, and rebates.
Metzger also highlighted incentives for contractors, including DOE’s partnership with Google, which recognizes contractors with Energy Skilled credentials. When homeowners search for HVACR companies, contractors with certified employees will appear on Google Maps with an Energy Skilled badge, signaling their expertise. This feature helps homeowners identify qualified professionals and provides contractors with greater visibility and credibility in the market.
Contractors’ view from the ground
The discussion then shifted to contractor experiences, where Ed Lehr and Eric Woerner shared their experiences. Lehr described the situation in Pennsylvania, where he’s been closely involved in supporting the implementation of these energy programs. While the state has submitted its application for IRA funds, he noted significant delays due to DOE requirements. Lehr explained that much of the available funding in his state appears earmarked for multifamily housing projects, leaving smaller, independent contractors feeling sidelined.
Woerner chimed in with similar insights from Ohio and Indiana, where he’s seen a gradual rollout. For contractors, he explained, the real challenge is the complexity of rebate processes. Contractors are looking for something as simple as Amazon’s one-click checkout, he remarked, emphasizing the need for straightforward, contractor-friendly systems. Both Lehr and Woerner agreed that contractor involvement in shaping these programs is crucial to their success.
ACCA’s efforts to support contractors amid IRA complications and uncertainty
Sean Robertson outlined ACCA’s role in advocating for contractors as states implement these programs. ACCA has developed resources to help contractors advocate for state participation in these programs and collaborate on program development.
One major challenge, he said, is ensuring contractors aren’t excluded from opportunities. As he brought up, when there’s a large pot of money to divvy up, states tend to single out a small subsection of beneficiaries. For example, many states have allocated most of their funding to multifamily buildings rather than single family homes. As a result, more contractors performing public work reap the rewards.
To address these issues, Robertson discussed ACCA’s Quality Installation (QI) Certificates, a tool designed to verify proper installations and streamline rebate processes. These certificates not only help contractors demonstrate their expertise but also give homeowners peace of mind about their investment.
Promoting energy efficiency for quality installation is one of ACCA’s top priorities for 2025-26. ACCA Members: We want to hear from you! Comment on our policy priorities by March 16 to make your voice heard.
What’s next for IRA rebates?
With 27 states approved for funding so far, the future of IRA rebates is promising but uncertain. Metzger reminded attendees that federal programs could face administrative shifts depending on political changes when President Trump takes office, and contractors need to stay proactive in shaping and adapting to these programs.
Stay connected
ACCA members can view the full recording of this Codes and Coffee session in the video library.
*Since this episode was recorded, President Trump has taken office and issued an executive order to pause the IRA rebate program. This story is still developing. Read more here.
Posted In: Quality Standards, Regulation Reform, Technology, Top Priorities
