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Federal Inflation Reduction Act (IRA):
The Inflation Reduction Act of 2022 (IRA) is a U.S federal law that aims to lessen total emissions and energy consumption. The goal is to invest in domestic energy production and promote clean energy on all federal, state, and local levels. For us locals, now is the time to consider investing in your home to improve its energy efficiency. Accurate-Airtight Exteriors can provide both estimated or energy audits to determine which energy efficiency projects may be needed for your home. Whether new HVAC, doors and windows, electrical, solar, or weatherization work is completed, you may be entitled to federal tax credits and rebates. Based on the work you may be completing on your home to improve energy efficiency, the amount of the federal credit you can gain is based on a percentage of the total improvement expenses (in the year of installation).
The potential credits available to you are based on the year you complete the work. From 2023 through to 2032: 30% of the cost of the project is used to determine your credit (this is capped at a maximum of $1,200/ year for weatherization work). See the graph below for information:
For additional information on this, consider going to the link here:
https://www.energy.gov/lpo/inflation-reduction-act-2022#:~:text=The%20Pr...'s%20Inflation%20Reduction%20Act,energy%20manufacturing%2C%20and%20putting%20the
Focus on Energy Rebates
Accurate-Airtight Exteriors is a proud partner with Focus on Energy. Focus on Energy offers homeowners air sealing and insulation rebates if they choose to weatherize their home. Certain requirements and qualifications must be met in order to qualify for the rebates, however. Focus on Energy Materials and Installation (M & I) Standards must be followed when a project is completed. Projects of a certain size qualify for rebates, while others do not. For example, a wall insulation project done must be 600 sq. ft. or larger and begin with an effective insulation R-value of zero to qualify.
For additional information on this, consider going to this link below:
HOMES and HEAR Programs
The federal IRA rebates consist of two programs: the Home Efficiency Rebate Program (HOMES) and the Home Electrification and Appliance Rebate Program (HEAR). Both programs operate under the federal IRA law. For homeowners who complete energy efficiency work, rebates and tax credits may be applicable. Depending on the type of the efficiency work, however, changes the program where you receive the money from. For example, a homeowner who chooses to complete air sealing and insulation work on their home, is improving their home’s energy efficiency. This related work is given rebates from the HOMES program. On the other hand, a homeowner who choses to improve a natural gas stove to electric is also improving the efficiency of their home through ‘electrification’. This type of improvement is offered incentives through the HEAR program.
There is still much unknown of these new programs, requirements, and potential rebates but keep in mind that any work done may be eligible for additional incentives available to you to pay for the project. These are stackable rebates and can be provided to you on top of the Focus on Energy rebates as well.
Now is the time to get weatherization or other efficiency work done on your home!
For additional information on this, consider going to one of the following links below:
A-AE - IRA Case Study
The Inflation Reduction Act (IRA) was recently enacted by the government to begin 2023. This newly enacted act is aimed at fighting climate change and provides rebates and incentives towards energy efficiency improvement projects. The United States’ goal is to reduce U.S Greenhouse gas emissions 40% by 2030.
With $370 billion allocated towards improving the environment, customers who complete various energy efficiency improvement projects can now utilize tax credits to help pay for the work completed. These incentives include:
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Energy Efficiency Home Improvements (The Nonbusiness Energy Property Tax Credit)
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Energy Efficient Home and Multifamily Credit (New Energy Efficient Home Credit)
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Federal Solar Tax Credit (Investment Tax Credit)
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$4.3 Billion for HOMES (Home Owner Managing Energy Savings) Rebate Program
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$200 Million for State-Based Home Energy Efficiency Contractor Training Grants
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$4.5 Billion for High-Efficiency Electric Home Rebate Program
As a weatherization contractor, A-AE is very excited as these incentives will help pay for homeowner’s weatherization work. If completing insulation, air sealing, and ventilation work, the customer can receive upwards of $1,600. Other rebates are provided for upgrading heat pump HVAC systems, heat pump water heaters, and heat pump clothes dryers, electric wiring, electrical panel upgrades, and electric stoves.
After the government passed this act, the Wisconsin State Journal reached out to us for an interview to be on the front cover of their paper. A-AE provided an interview discussing the new act and how it will help with the industry, the environment, and our company. We provided images at a current jobsite insulating a home in Sussex, WI, and our company was featured on the front page of the Journal. If you would like to read more, the link to the article is:
https://lnkd.in/giEhhsky?trk=organization_guest_main-feed-card-text
Whether you would like an energy audit, estimate on your home, or weatherization work, give us a call to discuss your home improvement recommendations to improve energy efficiency, comfort, and building integrity.
For more detailed information, please visit Energy Circle’s web page, written by Cory Allyn: