The High-Efficiency Electric Home Rebate Act (HEEHRA) provides point-of-sale consumer rebates to enable low- and moderate-income households across America to electrify their homes. HEEHRA will help American families save money on their monthly energy bills, create healthier indoor air environments, and reduce their carbon emissions.

HEEHRA is a voluntary program that covers 100 percent of electrification project costs (up to $14,000) for low-income households and 50 percent of costs (up to $14,000) for moderate-income households.

Project costs will cover both purchase and installation costs. And, notably, these point-of-sale rebates will act as off-the-top discounts when a household makes the purchase.

HOW TO RECEIVE YOUR REBATE OR TAX CREDIT REBATES

All rebates are expected to become available towards the end of 2023 and each state will be rolling out its incentive programs individually. As we learn more about how Michigan and Ohio will move forward, we will keep you updated on how we can help you claim your rebate. These details may come later this year. In the meantime, if you’d like to talk through your options, feel free to give us a call! It’s not too early to begin planning for the future.

TAX CREDITS

First, keep in mind that you can begin to receive tax credits on January 1, 2023. In the year following your project, you can claim 30% of your project costs (up to the maximum amount) when you file your 2023 taxes.

TAX CREDITS FOR ENERGY EFFICIENT EQUIPMENT AND UPGRADES

The Inflation Reduction Act tax credits are available to all incomes and can be combined with rebates. Simply put, it’s savings everyone can benefit from, regardless of household income! Between 2023 and 2031, you can claim 30% of the cost of qualified electrification projects as tax credits on your annual taxes. Here’s what’s included:

• Heat Pumps – Mini-splits and split units (Available 2023 through 2031)
  • All income levels will receive 30% of the cost up to $2,000.

• Heat Pump Water Heater (Available 2023 to 2031)
  • All income levels will receive 30% of the cost up to $2,000.

• Tankless Water Heater (Energy Star rated)
  • All income levels will receive 30% of the cost up to $600.
• Tank Water Heater (Energy Star rated)
  • All income levels will receive 30% of the cost up to $600.
• Tankless Boiler Units (Energy Star rated)
  • All income levels will receive 30% of the cost up to $600.
• Residential Furnace (Energy Star rated)
  • All income levels will receive 30% of the cost up to $600.
• Air Conditioner (Energy Star rated)
  • All income levels will receive 30% of the cost up to $600.
• Geothermal Heat Pumps (Available now to 2031)
  • All income levels will receive 30% of the cost of install (no limit).

• Electric Upgrades (Available 2023 to 2031)
  Must be related to a qualified energy efficiency improvement. 
  • All income levels will receive 30% of the cost up to $600 for panel upgrades.

The overall total limit for an efficiency tax credit in one year is $3,200.

This breaks down to a total limit of $1,200 for any combination of home envelope improvements (windows/doors/skylights, insulation, electrical) plus furnaces, boilers, and central air conditioners.

Any combination of heat pumps, heat pump water heaters and biomass stoves/boilers are subject to an annual total limit of $2,000.

Call us to learn more or to reserve your rebates and be in the front of the line.

Energy Star Information

Heat Pump and Natural Gas Furnace