Inflation Reduction Act Rebates: Quick Look

What federal rebates are coming, and will I be eligible?

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• The federal Inflation Reduction Act will begin offering rebates for electric appliance installation and home efficiency in 2024. This will depend entirely on the state you live in and the launch of your state's specific program. These programs will offer unprecedented support for certain types of home electrification projects!

• Currents is always monitoring the state (federally funded) rebate programs so that we can deliver personalized savings to you; learn how much you can save by signing up‍

• Appliance rebates will be available to those earning less than 150% of the Area Median Income (AMI), and may offer up to $14,000 for home electrification, including $8,000 for heat pumps, $4,000 for electrical work, $1,750 for heat pump water heaters, and lesser amounts for other upgrades. See how much you qualify for at homecurrents.org/incentives

• Energy efficiency rebates may offer $2,000 - $7,000, depending on total energy savings, with larger amounts for those earning less than 80% of AMI. These are measures designed to improve efficiency percentages of 20% or more. To receive these, you'll need to have an energy audit performed and show your past year of utility bills to show improvement.

• While the broad contours of the programs have been defined, the states still have significant leeway in implementing the programs, including targeting the money toward specific project types or populations. Remember that every state will have a different implementation of the programs so it's best to stay aware via Currents

• You can do a basic qualification check here, though this doesn’t account for state-specific implementation rules that may include additional eligibility requirements

• Rebates will not be retroactive, and will only be available after a state’s program has launched. For most states, this will be in mid 2024

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Which tax credits can I receive and how much?

• The IRA rebates are different from the federal tax credits, which are already available and are not limited to your income or location!

• You can receive tax credits, which are dollar-for-dollar deductions on your tax bill, when you file your taxes after installing energy efficiency products in your home

• Tax credits are eligible for things like heat pumps, solar energy systems, electric vehicles, heat pump water heaters, insulation, windows & doors, and more