What the Inflation Reduction Act Means to Heating Fuel Providers

The Inflation Reduction Act (IRA) of 2022 includes $369 billion in energy and climate policies. The White House touted the plan’s goal to “reduce greenhouse gas emissions by about 1 gigaton in 2030, or a billion metric tons – 10 times more climate impact than any other single piece of legislation ever enacted.”¹

It also includes large incentives for property owners to switch to electric heating:

• $4.275 billion for electrification rebates for single family and multi-family buildings
• Point-of-sale rebates of up to $8,000 for Energy Star^® certified heat pumps, $1,750 for a heat pump water heater, $840 for an electric appliances such as a stove, rang, oven or heat pump clothes dryer.
• Whole-home rebates up to $4,000 for efficiency improvements resulting in 15% energy savings.

They didn’t exclude the liquid heating market completely. Heat pump installations get $8,000. A new Bioheat^® fuel compatible boiler or furnace can earn a $600 tax credit. The IRA also includes $500 million over 10 years for the Department of Agriculture’s Higher Blends Infrastructure Incentive Program (HBIIP) to support biofuel production, storage, and distribution.²

Congress and the White House included heating systems that can run on “renewable fuel blends,” acknowledging our contribution to the countries carbon reduction goals. With equipment lifespans of 20-30 years, installing new systems now can protect your business for decades. By then, B100 heating fuel will be the norm, and we will be providing a truly net-zero fuel.

You can learn more about the IRA here.