A Year After the IRA: Where Are the Rebates?
It’s been a year since the Inflation Reduction Act (IRA) became law, sparking the biggest investments in clean energy in history with investments in new manufacturing along with a variety of specialized grants and a wide range of tax credits. That’s the good news.
The not-so-good news is that the major consumer programs to provide individual rebates are not yet available. They will all be available based on income.
The federal government in July released program guidelines for the states to use in applying for money. Colorado expects about $140 million split between the two home energy programs. Colorado is "working on a strategy and process to put us in a position to apply for funding,’’ according to the Colorado Energy Office. Rebates will not be available for projects completed before the Department of Energy has approved and funded the state’s programs.
The law will provide funding for Home Efficiency Rebates that will help pay for whole-house energy saving improvements and Home Electrification and Appliance Rebates to help pay for heat pumps and efficient appliances. These rebates are intended to serve low and middle income people, according to the CEO. "While exact income requirements are still being determined, households with an income over 150% of the area median income where they live will not qualify for these rebates. Don't hold out - get started with available tax credits," the energy office said in a statement.
Those looking to make improvements may want to get a home assessment or energy audit to see what would make the most sense.
Federal tax credits for a variety of home improvements that took effect this year can be claimed on tax filings next spring for work done before the end of 2023. And other programs are available now from utilities as well as state and local governments.
Here are some links to help:
Summary of Building Electrification Utility Rebates (loveelectric.org)
Summary of federal residential energy efficiency tax credits: Energy Efficient Home Improvement Credit | Internal Revenue Service (irs.gov)
Fact Sheet on residential clean energy and energy efficiency tax credits: Frequently asked questions about energy efficient home improvements and residential clean energy property credits (irs.gov)
National Database on incentives and rebates: https://www.dsireusa.org/
Home Energy Rebates Frequently Asked Questions | Department of Energy
News about rebates from Colorado: Sign-up for updates.
Colorado's new "Cash for Clunkers" Electric Vehicle Incentives: Vehicle Exchange Colorado (VXC) Program | Colorado Energy Office
Tthe IRA has spurred tremendous private sector investment in clean energy. Colorado has seen $1.76 billion in investment leading to 3,500 new clean energy jobs so far.
Nationally, clean energy projects creating 170,606 new jobs in 44 states were announced or advanced between August 16, 2022, and July 20, 2023. There are 272 new clean energy projects in small towns and big cities nationwide, totaling $278 billion in new investments, according to Clean Energy Boom Anniversary Report (climatepower.us)/