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.
Jane’s total household income is under $63,040.
Jane is eligible for the Low-Income rebates and tax credits.
Jane purchases a qualifying Heat Pump system for $9,027.35.
Jane has an out-of-pocket installed cost of $1,027.35 after rebates.
Jane receives a federal tax credit of $308.21.
Susan’s total household income is between $63,040 to $118,200.
Susan is eligible for the Moderate-Income rebates and tax credits.
Susan purchases a qualifying Heat Pump system for $9,027.35.
Susan has an out-of-pocket installed cost of $4,513.68 after rebates.
Susan receives a federal tax credit of $1,354.10.
Michelle’s total household income is above $118,200.
Michelle is eligible for tax credits only.
Michelle purchases a qualifying Heat Pump system $9,027.35.
Michelle has an out-of-pocket installed cost of $7,027.35 after a $2,000 tax credit.
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.
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.
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:
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.