By Brian Gray
Now that the Inflation Reduction Act (IRA) has been implemented, here are some updates and helpful links to let you know what incentives you may qualify for to improve the energy efficiency of your home.
The IRA includes $370 billion for initiatives aimed at improving the environment and helping homeowners reduce their fuel burden. It is the biggest investment our government has ever made to fight climate change and is projected to reduce US greenhouse gas emissions 40% by 2030
There are both tax credits and rebates included in the program. Here are some program highlights:
Energy Efficiency Home Improvement Tax Credit
Beginning Jan. 1, 2023, this tax credit equals up to 30% of certain qualified expenses for qualified energy efficiency improvements installed during the year such as:
- Exterior doors, windows, skylights and insulation materials
- Central air conditioners, water heaters, furnaces, boilers and heat pumps
- Biomass stoves and boilers
- Home energy audits
The credit has no lifetime dollar limit. You can claim the maximum annual credit every year that you make eligible improvements until 2033.
Income Eligible Rebate Program
$4.5 Billion is being allocated for rebates for low and moderate-income homeowners for electric system/appliance purchases and energy efficiency upgrades.
- Maximum rebate of $14,000 per household; individual rebates are as follows:
- Heat pump water heaters: $1,750
- Heat pump HVAC systems: $8,000
- Electric stoves: $840
- Heat pump clothes dryers: $840
- Electrical panel upgrades: $4,000
- Insulation, air sealing, and ventilation: $1,600
- Electric wiring: $2,500
- Rebates cannot be combined with other federal grants or rebates
Homes Rebate program – Allocates $4.3 Billion in rebates for home efficiency weatherization improvements.
- Homes with energy reductions of at least 20% are eligible for a maximum rebate of $2000
- Homes with energy reductions of 35% are eligible for a maximum rebate of $4000
- Rebates are double for lower income households (80% of the local median income)
How much is my rebate?
This is one of the most frequently asked questions from our members and customers when considering an energy upgrade.
To help break down your options, Rewiring America has installed a helpful tool which gives you a quick reference for eligible incentives and rebates based on your location, income and desired upgrade.
The White House also has a website with a summary of tips and eligible improvements.
As always, the team at the Energy Co-op is happy to answer questions about your home and the upgrades you may be considering. We are looking forward to helping Vermont homeowners take advantage of these programs and incentives to help achieve a cleaner environment for the planet and a more comfortable and healthy home.