New Climate Bill Will Save You Money With Up to $14,000 In Rebates & Tax Credits
President Biden’s Inflation Reduction Act signed into law on August 16, 2022, is tackling climate change in a big way by helping Americans reduce their carbon footprint and lower energy costs.
This is great news for Iowans! Homeowners will be able to get up to $14,000 in rebates and tax credits by simply making their home more energy efficient; saving families at least $350 per year according to the White House numbers.
Two separate rebate programs will be available to homeowners in the next few months.
The HOMES Rebate Program
The HOMES program provides rebates based on the energy savings their upgraded home will achieve. For instance, homeowners that make changes that cut their energy usage by at least 35% can get up to $4,000 in rebates. That amount is doubled for low- and middle-income households, who can get up to $8,000 in rebates.
The HOMES Rebate will cover upgrades, such as solar panels to new windows, anything that helps your home become more energy efficient. You can even upgrade your heating and cooling system. In fact, one of the most appealing rebates is up to $8,000 for installing a brand new heat pump system.
Related: Do Heat Pumps Work Below Freezing?
High-Efficiency Electric Home Rebate Act (HEEHRA)
The HEEHRA rebates allow low- and middle-income families to electrify their homes, such as installing heat pumps.
HEEHRA will help American families save money on their monthly energy bills, create healthier indoor air environments, and reduce their carbon emissions.
The per household rebate is capped at $14,000, and households can’t receive two rebates for the same upgrade. For instance, if you claim a HOMES Rebate program for a heat pump, you can’t get a rebate through the HEEHRA.
Here are the caps and qualifications on rebates for other upgrades made via the HEEHRA program:
- $1,750 for a heat pump water heater
- $8,000 for a heat pump for space heating and cooling
- $840 for electric stoves, cooktops, ranges, ovens and electric heat pump clothes dryers
- $4,000 for an electric load service center upgrade
- $1,600 for insulation, air sealing and ventilation
- $2,500 for electric wiring upgrades
There’s a $14,000 cap on the dollar amount of rebates offered under the program. For instance, low-income homeowners can get up to 100% of electrification projects covered — up to the cap of $14,000 in rebates — while middle-income consumers can get up to 50% of their costs covered by the rebates (also up to that $14,000 cap).
What type of tax credits can I get?
Tax credits are different from rebates because consumers receive them when they file their taxes. Rebates, on the other hand, are often applied when someone buys an item.
The Inflation Reduction Act expands a homeowner efficiency tax credit, called the Energy Efficient Home Improvement Credit. This covers up to 30% of the cost of energy upgrades, with a cap of $1,200 per year.
When can you save up to $14,000 in rebates & tax credits?
Announcements regarding how to apply for the rebates will be announced later this year. As soon as this program is officially available to the public, we will keep you posted.
What should you do now to prepare?
To get a head start, it’s recommended to have an energy audit (whole-home evaluation) completed on your home. Your energy audit will offer guidance on how you can make your home more energy efficient. An energy audit can help reduce your carbon footprint by pinpointing trouble areas in your home that may be wasting energy. And as you know, reducing energy consumption can help save money on your energy bill.
How Service Legends can help you.
Our rigorous home energy audit checklist starts off with:
- The Evaluation – A registered energy auditor will come to your home and conduct a walk-through of the inside and outside to determine your energy usage and problem areas. While conducting their walk-through, they will analyze specific elements that contribute to your home’s or business’s overall energy efficiency.
The auditor will analyze the heating and cooling systems, or HVAC system, and your insulation levels, including the basement and exterior attic walls. In addition, they will measure and count how many doors and windows the building has and take external measurements.
- Airtightness & Other Tests – The second part of an energy audit involves an airtightness test, also known as a blower door test. During this test, an energy auditor will determine how tight a building’s envelope is by checking for air leakage in a house. During an airtightness test, an air sealing procedure is done. The auditor will seal the front door of the building, and they will place a large fan inside.
The testing fan will pull the interior air outside the building, which will force outside air to come through any cracks or holes. Often, these air leaks are easily felt with your hand, but most auditors will use feathers or incense to accurately determine where the cracks are located.
In addition to the airtightness test, an energy auditor will assess your home’s energy use by conducting a thermographic scan. Moreover, they will use various energy usage equipment items to measure energy consumption, such as infrared cameras, surface thermometers, and furnace efficiency meters.
Finally, the auditor will analyze past utility bills.
- Recommendations to Improve Energy Efficiency – Once your residence has been evaluated and testing has been completed, the energy auditor will provide you with a thorough list of recommendations regarding energy efficiency improvements you can undertake. If implemented, most of the recommendations will help you save money on utility bills.
Our energy audit will not only find out the why but also what to do about it – no more guessing! We believe that if you don’t measure it, you’re not really saving. Give Service Legends a call and let us improve the energy efficiency of your home with maximum savings and rebates up to $14,000.
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