The Inflation Reduction Act of 2022—passed into law on August 16, 2022—will bring down energy costs and make it more affordable for individuals and families to buy energy-efficient appliances and make home improvements, saving them even more money in the long run.
Additionally, it will help reduce pollution, tackling the energy climate crisis and creating new energy solutions.
Families can save thousands from the Act through rebates for energy-efficient appliances as well as through tax credits on heat pumps and rooftop solar.
A study by The Climate Institute claims that 20% of electricity use in buildings worldwide is from electric fans and air conditioners. As a result of greater access to more energy-efficient equipment, it will help to combat climate change.
Tax Credits and Rebates Combating Energy Inflation
- Up to 30% savings with tax credits for energy-efficient HVAC equipment (air conditioners, furnaces, water heaters, and other heating and cooling equipment), which could save families up to $1,200 per household.
- Up to 30% savings with tax credits for home construction projects on windows, doors, insulation, or other measures that prevent air from escaping from the home.
- Direct rebates for replacements and upgrades on stoves, ovens, and other home appliances that are more energy efficient and electric, which can lower your energy bills by at least $350 per year, if not more.
The Act has a max rebate of $14,000 per household, which can help homeowners in replacing expensive items such as HVAC systems, upgrading electrical panels, insulating their homes, installing heat pumps or water heaters, or installing solar panels on the roof.
You Can Claim Rebates Up To...
$1,750
Heat Pump Water Heaters
$8,000
Heat Pump for Space Heating or Cooling
$840
Electric Stove, Cooktop, Range, Oven, Dryer
$4,000
Breaker Box Upgrade
$1,600
Insulation, Air Sealing, Ventilation
$2,500
Electrical Wiring
“The rebate actually means a discount, buyers who make 80% or less of the area median income can access the most money, while those making up to 150% of area median income see a smaller benefit.”
The Inflation Reduction Act will allow many families to seek out energy-efficient equipment and even purchase electric or fuel cell vehicles. It not only covers energy, but also healthcare and prescription drugs.
For more information, go to whitehouse.gov and search Inflation Reduction Act fact sheets.
