Move Toward a Greener Tomorrow
Café Appliances looks to build a greener future. We invest in environmentally responsible programs to make our company greener. And we’re always considering new ways to do even more. To help you be greener, we’ve compiled information about the U.S. Inflation Reduction Act, which was passed to help consumers fight climate change at home.
The U.S. Inflation Reduction Act
What is the Inflation Reduction Act (or IRA)?
It’s a bill passed by Congress in 2023 to help the U.S. combat climate change through initiatives receiving federal money, grants, and consumer incentives. Two main homeowner-related parts of the bill set up $8.5 billion for rebates and tax credits up to $2000. To qualify for the rebates or credits, consumers must install or upgrade energy-efficient appliances and equipment in their homes.
A Hard Act to Follow
For many consumers, the Inflation Reduction Act is challenging to follow. That may be because it’s made up of so many parts. Most consumers only need to understand the High Efficiency Electric Home Rebate Program and the Homeowner Managing Energy Savings Rebate Program. Though tax credits of up to $2000 are available today, each state must create its rebate programs through its state energy offices. Some states have said to look for their rebate programs early in 2024, but many will not likely distribute these incentives until later in the year or in 2025.
High-Efficiency Electric Home Rebate Program
Created to assist low-to-medium-income homeowners in saving on high-efficiency electric home appliances, section 50122 of the IRA says for families to qualify, they must earn a total annual income of less than 150 percent of the median income of the area where they reside. Consumers can look up their area median income through the Department of Housing and Urban Development.
Receive up to $840
in rebates on high-efficiency electric stoves, cooktops, ranges, ovens, and electric heat pump clothes dryers.
If your Area Median Income (AMI) is:
<80% AMI
Receive 100% of the cost
up to $840
80-150% AMI
Receive 50% of the cost
up to $840
Homeowner Managing Energy Savings Rebate
Section 50221 of the IRA states that qualifying whole-home energy savings projects must include fitting an existing home with weatherization upgrades like energy-efficient appliances (such as a heat pump) or insulation. The amount of this rebate will depend on the energy saved by updating appliances and/or weatherization of the home.
Start Your Green Journey
To find out more about the rebates and incentives available to you, search the Database of State Incentives for Renewables & Efficiency. There, you can find out if your state has instituted its Inflation Reduction Act program.
To learn more about the Inflation Reduction Act, check out these articles:
- Details from the White House about the U.S. Inflation Reduction Act.
- The Inflation Reduction Guidebook created by the White House.
- Consumer Reports article about how the IRA could affect appliance purchases.
- Bloomberg explains the individual state IRA rebate distribution programs.
- Learn about the Energy Efficient Home Improvement Tax Credit
- Find your state energy office here.