Money in your Pocket

Money in your Pocket

The Inflation Reduction Act 2022, passed in August and is a legislation that can help you afford to upgrade your home and appliances to become more energy efficient. But instead of some tax rebate next spring, some of this is rebateable at the point of purchase, which means you can walk out of there paying almost nothing for new appliances and household electric upgrades.


To qualify for this point of purchase rebate, your family's total annual income must be less than 150% of the median income where you live.

Qualifying homeowners can get rebates as high as:

  • $840 for a stove, cooktop, range, oven, or heat pump clothes dryer;
  • $1,750 for a heat pump water heater; and
  • $8,000 for a heat pump for space heating or cooling.

A graphic done up by HVAC.com explains it nicely in terms of Heat Pumps.

heat pump rebates and tax credits, 100% rebate wup to $8,000 for low income homes, 50% rebates, up tp $8,000 for Mid-income homes, 30% tax credit, up to $2,000 high income homes

Rebates for non-appliance upgrades will also be available up to the following amounts:

  • $1,600 for insulation, air sealing, and ventilation;
  • $2,500 for electric wiring; and
  • $4,000 for an electric load service center upgrade.

For a total of up to $14000 in energy saving updates, some of which will only cover 50% of the purchase.  Those earning more than 150% of the median income in your area can claim the old fashioned tax credits for such purchases up to $2,000. Each states will roll out the details of how  the program will be administered in their state around January. 


Another provision in the Inflation Reduction Act allows for an annual credit of $1,200 for specific types of qualifying improvements. Beginning in 2023, they will be equal to 30% the cost of all eligible home improvements made during the year.

There are also provisions for electric vehicles, Residential Clean Energy Credits that is worth 30% of the cost to install a qualifying solar, wind, geothermal, biomass or fuel cell to produce electricity to heat water or regulate the temperature of your home.


The White House has a great interactive webpage to help you learn more: https://www.whitehouse.gov/cleanenergy/


Of course the whole point of all of this is not just to help clean our air and planet, but to save you money. The White House Estimates that the average home can save $500 per year in energy costs by making some of these rebated and energy efficient changes. 

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