States Begin Application Process for IRA Appliance Rebates
A Multibillion Dollar Rebate Program: Who Are Qualified? (PHOTO: SolveXia)
Environmental and Financial Benefits: Guidance from the Department of Energy (DOE)
Since its enactment in 2022, the Inflation Reduction Act (IRA) has provided households that install eco-friendly appliances like induction stoves and heat pumps with incentives. Consumers haven’t yet received any of those rebates, though that may soon change for bureaucratic reasons.
Homeowners have not yet been able to collect any of the $8.8 billion in rebate program monies since the IRA mandated that the cash must be disbursed through individual states, which requires an application process. However, as of late February, Bloomberg revealed that four states had at least started the application process with the U.S. government: California, New York, New Mexico, and Hawaii. DOE, the Department of Energy.
The DOE shows states’ progress toward the rebates on an updated online tracker. If you live in one of the states with a pending application and you are considering the switch to more energy-efficient, less-polluting appliances, you may want to wait just a little bit longer, because big savings could be right around the corner.
That said, the DOE recommends not to wait if you urgently need an upgrade and points out that “you can go to energy.gov/save for more information on energy-saving purchases that qualify for rebates and tax credits.” Also, retroactive rebates might eventually be available for projects dating back to August 2022, and the DOE suggests contacting your state’s energy office to find out if you can access this benefit.
Rewiring America reports that the IRA incentives include a reimbursement of up to $8,000 for a heat pump—a device that can be used for both heating and cooling a home—a water heater with a heat pump worth up to $1,750, an induction cooktop or heat pump clothes dryer worth up to $840, and electrical system modifications worth up to $4,000.
By taking advantage of the program, homeowners might save up to $14,000 in total, depending on their income. This would assist the environment, save long-term energy bills, and reduce air pollution in their houses.
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Timeline for Appliance Rebate Implementation
As the home appliances rebates from the IRA become easier (i.e., possible) to claim, other incentives from the IRA may become more limited — namely, the tax incentive for purchasing an electric vehicle. Starting in 2024, fewer models of EVs have been qualifying for this credit due to regulations phasing in stricter requirements around battery components and mineral standards, as NerdWallet noted. However, the available EV rebates will now be applied upfront, as NPR has pointed out.
All that said, for anyone who, say, lives in California, purchased an EV in the past few years, and is now considering upgrading to a heat pump and induction stove, the IRA could really pay off.
Although the date of the applications’ submission and the rebates’ implementation are still unknown, Claudia Rapkoch, the Hawaii State Energy Office‘s public affairs officer, told Bloomberg, “Our current plan is to phase in a limited rebate offering beginning in the second half of 2024, with the aspirational goal of having the program fully operational by the end of 2024, contingent on DOE approvals.”
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