The Inflation Reduction Act: Funds for Green HVAC Upgrades

Aug 24

Get Rewarded for Making Your Home Energy Efficient!

If you're thinking about upgrading your home to be more energy efficient, we've got some exciting news for you! The federal Inflation Reduction Act and the Washington State Legislature are coming together to provide funds that support home improvements like boosting energy efficiency and adopting greener home technologies.

Supporting Green Homes Across the Nation

In the last couple of years, big efforts have been made at the federal level to support projects that make our buildings more eco-friendly. The 2021 Infrastructure, Investment and Jobs Act (also known as the Bipartisan Infrastructure Law or "BIL") is a massive $1.2 trillion investment in transportation and infrastructure. Of that amount, a significant $107.5 billion is focused on energy, power, and ensuring reliable energy grids. This money isn't just going anywhere – it's aimed at projects that will help reduce the carbon footprint of buildings, improving codes, and boosting the workforce behind sustainable building technologies.

The 2022 Inflation Reduction Act is another powerful tool in this green initiative. With $500 billion directed towards speeding up clean energy investments and cutting down carbon emissions, it's a big step towards a greener future. This act includes various incentives and rebates related to buildings. The focus is on making homes more energy efficient and promoting the use of cleaner electricity, all while keeping low-income households in mind. This means you could get rebates and tax credits to help cover the costs of energy-efficient electric appliances and home upgrades that save energy.

Making Green Resources Accessible

The Commerce’s Energy Office is hard at work to make sure these resources are available to you and other households in a way that's fair, timely, and effective.

For Washington state residents, exciting opportunities are on the horizon. The IRA rebates are expected to kick in around late 2023 or early 2024, with the plan to start these rebate programs in 2024. The Washington State Legislature is also adding extra funds to support these programs.

The U.S. Department of Energy has set out guidelines for these programs, giving everyone a clear roadmap. The Commerce team plans to involve the public in discussions to make sure Washington's rebate programs are designed to fit the needs of the people.

Score Rebates for Energy-Saving Upgrades

One fantastic program on the horizon is the High Efficiency Electric Home Rebate Program under Section 50122. This is all about making it easier for you to choose energy-efficient options. If your income qualifies, you might be able to get rebates when you buy appliances that are kinder to the environment or when you make upgrades that help save energy at home. These rebates cover a wide range of things, like:

Heat pumps for heating your home and water (energy star rated)
Highly efficient heat pump dryers
Electric stoves, cooktop ranges, or ovens (yes, even induction ones!)
Upgrading your electric load service center
Adding insulation, sealing air leaks, and improving ventilation
Updating electric wiring to be more efficient

The Department of Energy is expected to send funds to states around late 2023 or early 2024, with rebates becoming available in 2024. Commerce plans to combine this funding with extra money from the state legislature for the 2023-2025 period.

More Ways to Save: Whole Home Rebates and Tax Credits

That's not all! There's also the Home Energy Performance-Based, Whole Home Rebates program under Section 50121. This one focuses on rewarding homeowners who make whole-house energy-saving changes. The rebates will vary based on how much energy you save and whether you meet income qualifications.

And don't forget about the IRA Tax Credits – these can help you save on your taxes while you're saving energy. These credits are administered by the Internal Revenue Service (IRS) and are available starting from the 2023 tax year. For more details on these tax credits, you can visit the US Department of Energy's Clean Energy Tax Credit webpage.

President Biden's desire to cut greenhouse gas emissions in the U.S. has led to a number of important steps, such as the Inflation Reduction Act of 2022. This law sets aside a lot of money for projects that use clean energy to reduce carbon emissions. The act encourages homeowners to switch to greener technologies, like energy-efficient water heaters, which are a big part of lowering energy costs and carbon footprints. Under this act, homeowners can get tax credits and rebates to help pay for these upgrades. This makes it easier for them to help the country reach its clean energy goals and lower their utility bills at the same time.

In line with the goals of the act, the Energy Star program will become even more well-known as it continues to certify green building solutions and appliances that use less energy. Through this initiative, people will get a discount on water heaters and heating and cooling systems that have the Energy Star label. This will encourage more Americans to choose these environmentally friendly options over natural gas and fossil fuel-based systems. The Inflation Reduction Act creates a win-win situation for homeowners by giving them financial incentives and tax credits. This lets them improve their energy efficiency, lower their utility bills, and help the environment by switching to more environmentally friendly ways to heat, cool, and heat their water.

So, get ready to make your home more energy efficient, lower utility bills and contribute to a healthier planet. With these rebates and incentives, greening your home has never been easier!