Inflation Reduction Act

The Inflation Reduction Act (IRA) is the largest legislation Congress has ever passed to:

  • Reduce carbon emissions
  • Increase energy innovation

Its home energy offerings may provide a substantial pot of money for households to electrify, which include:

  • Up-front discounts
  • Tax credits
  • Low-cost financing

Electrifying your home simply means replacing fossil fuel use (propane, heating oil, gasoline) with electricity to reduce:

  • Emissions
  • Energy costs

IRA Savings Calculator

Additional Resources

Frequently Asked Questions About the IRA – Provided by Rewiring America

When can I access the IRA incentives?

For an overview of incentives you can use right now, see the full FAQ.

  • Some incentives are available now, and others will become available in 2023.
  • The tax credits marked “2023” will be available on January 1, 2023.
  • The upfront discounts marked “2023” will depend on how each state rolls out its incentive program. (Our best guess is that those upfront discounts will be available mid-end of the year 2023.)
Do I need to spend a lot to get these incentives?

In many cases, no! The IRA incentives are designed to increase access to clean technology.

Lower Income Households

  • 100% of appliance and installation costs are discounted at purchase
  • Could install efficient electric appliances at no cost, with no spending

Middle Income Households

  • Have to spend in order to access savings
  • Up to 50% of appliance and installation costs can be covered through upfront discounts
  • Can use tax credits to cover some of the remaining gap

Highest Income Households

  • Are not eligible for upfront discounts
  • Will have to pay full price for appliances and installation
  • Tax credits on the back end could recoup around 30% of your costs
Can the IRA help me if I am a renter?

Yes! The up-front electrification rebates and electrification tax credits can all be used by renters.

Many of these upgrades (including window-unit heat pumps, electric stoves, and heat pump clothes dryers) are portable, so renters:

  • Can bring them to their next homes
  • Won't have to leave any savings behind

Renters are also eligible for the used and new EV tax credits. And although they are not exactly consumer-facing, renters will benefit from the:

  • IRA’s $1 billion investment in affordable housing energy upgrades
  • New tax deduction for efficiency upgrades in commercial buildings (including apartment buildings)