Bill to nix federal HVAC rebate program advances in House

A House Energy and Commerce subcommittee on Wednesday advanced a slate of eight federal bills, most of which aim to roll back Biden-era energy efficiency regulations. 

What’s happening: One of the bills — the ‘Homeowner Energy Freedom Act’ — would repeal one of two consumer-facing rebate programs established under the Inflation Reduction Act (IRA), which provides low-to-moderate income households with up to $14,000 for installing qualifying equipment, including heat pumps. 

• It would also eliminate $200 million appropriated for contractor training grants related to the program and rescind any unobligated funds. 

Why it matters: While President Trump’s ‘big, beautiful bill’ eliminated a separate pair of consumer-facing HVAC tax credits, the IRA’s rebate programs have remained untouched. 

• However, a funding freeze instated in January has left many states’ programs in limbo, as Homepros previously reported.
• As of November, 14 states, including D.C., have at least one of the two rebate programs up and running. 

What they’re saying: Legislators from each party on Wednesday claimed to prioritize affordability, with Republicans arguing that Biden-era energy mandates are burdening taxpayers, while Democrats contended that such incentives will save Americans money over time. 

• “Under the last administration, nearly 30 energy efficiency standards were issued, totaling over $60 billion in costs and removing products from the market, resulting in fewer options for Americans,” said Ohio Congressman Bob Latta, the subcommittee’s chairman.
• The other side: “Republicans spent months [making sure] people who make over $500,000 a year can have permanent tax cuts on everything… but we’re going to nickel-and-dime families that make $44,000 to $95,000 a year and say ‘We’re not going to give you up to $2,000 to replace your heat pump,’” added Virginia Rep. Jennifer McClellan.

Of note: Among the remaining bills that were advanced is the ‘Energy Choice Act,’ which would effectively prohibit state and local governments from restricting access to natural gas appliances, including HVAC equipment, amid several states’ efforts to do so. 

What’s next: The bills now head to the full House Energy and Commerce Committee for markup, and if approved, will advance to the House floor for a vote.