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Last month’s newsletter highlighted the potential of the Inflation Reduction Act. For this month we’ve decided to break down the bill to highlight relevant rebates and tax credits that the act will make available to clean energy adopters. |
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HEEHRA – High-Efficiency Electric Home Rebate Act |
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$4.5B in direct rebates, up to $14,000 per household. Designed for lower/moderate income households: |
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Rebates of up to $1,750 for a heat pump water heater, $2,500 for rewiring, $1,600 for basic weatherization, $4,000 for panel upgrades, & much more. |
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25C – Tax Credit |
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Tax credit of up to 30% of the cost of electrification or energy efficiency upgrades. Designed for households who have a tax liability. (middle/high income) Tax credit cap of $1200 per year, with the exception of heat pumps & heat pump water heaters – tax credits capped at $2,000 per year. |
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45L – Tax Credit |
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New energy-efficient home tax credit, for single-family home builders & multifamily developers. Also applies to deep retrofits. Tax credits for dwelling units that are eligible to participate in the ENERGY STAR Residential New Construction Program or the ENERGY STAR Manufactured New Homes Program: |
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179D – Tax Credit |
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This is a tax credit specifically for commercial buildings. It’s efficiency-based, so if HPWHs increase the efficiency, they would apply here. |
Read the full newsletter: September 2022 Newsletter