How Homeowners Can Prepare for HEEHRA Tax Credits and Rebates
With the passage of the Inflation Reduction Act of 2022, American homeowners have access to a slew of incentives and tax credits for making energy-efficient updates to their homes.[0] The $1.6 billion in tax credits and rebates available in 2023 alone, as estimated by the Congressional Budget Office, is a huge win for homeowners looking to make their homes greener.
The High-Efficiency Electric Home Rebate Act (HEEHRA) provides up to $14,000 per household in point-of-purchase rebates for low- and moderate-income households who are looking to replace fossil-fuel-burning equipment with more efficient electricity-powered units.[1] This program can be combined with other federal energy-efficiency and electrification tax credits, some of which became available on January 1, 2023.[1]
In order to take full advantage of the HEEHRA program, Jennifer Amann, an expert on residential decarbonization, recommends a few steps that people can take now to prepare.[2]
First, find out if you are eligible. Low-income households are defined as earning less than 80% of the median family income in their area, while moderate-income households earn 80 to 150% of their area’s median family income.[2] The US Department of Housing and Urban Development has an online resource to assist households in determining which classification they belong to.[2]
Second, take stock of your home. The Department of Energy offers an extensive manual for examining every corner and crevice, as well as advice for timely repairs for those who can use a screwdriver or caulk gun.[1] Additionally, households should contact their utilities to see what services (and financial incentives) are available for more professional energy assessments.[2]
Third, make a list and check your electrical panel. By conducting a quick assessment of the appliances in a home, a family can determine which items they should replace using the HEEHRA rebates, as well as the order in which they should do so.[1]
Fourth, seek out other financial tools. Major fixes can cost a lot of money, but the Inflation Reduction Act and the Biden administration’s $1 trillion infrastructure law include significant new funding for the Department of Energy’s existing Weatherization Assistance Program, which helps low-income households to make energy-efficiency upgrades.[1] At some point, the HEEHRA program will offer discounts for weatherization projects.[1]
0. “How Fresh Tax Credits, Rebates Can Launch Your Eco Home Update” KXLY Spokane, 13 Feb. 2023, https://www.kxly.com/news/money/how-fresh-tax-credits-rebates-can-launch-your-eco-home-update/article_4651e929-d86d-56ea-9d61-9531f8075c3e.html
1. “Rebates for home energy upgrades are coming soon. Here’s how to plan” Canary Media, 7 Feb. 2023, https://www.canarymedia.com/articles/electrification/rebates-for-home-energy-upgrades-are-coming-soon-heres-how-to-plan
2. “Plan Now For Home Efficiency Federal Rebate Programs” CleanTechnica, 7 Feb. 2023, https://cleantechnica.com/2023/02/07/plan-now-for-home-efficiency-federal-rebate-programs/
