On August 17, 2022 President Biden signed the Inflation Reduction Act (IRA), a tax, drug-pricing, and climate change bill passed through the reconciliation process. One of the components of the IRA is the newly created High-efficiency Electric Home Rebate Program which provides state energy offices with funds to give low and medium-income homeowners and landlords a rebate of up to $8,000 on qualifying heat pumps and additional rebates to upgrade electrical panels, ventilation, and home wiring. While $4.3 billion has been appropriated for the rebate program, it will be up to individual states to make the rebate available to residents.
Each of the following appliances and upgrades is eligible for rebates if it is certified by the Energy Star program:
- Heat pump for space heating or cooling: $8,000
- Heat pump water heater: $1,750
- Electric stove, cooktop, range, or oven: $840
- Electric heat pump clothes dryer: $840
- Electric load service center upgrades: $4,000
- Insulation, air sealing, and ventilation: $1,600
- Electric wiring: $2,500
In addition to individual rebate limitations for each appliance, the rebate is also limited based on the income of the homeowner/tenant.
Some states have already implemented policies to encourage fuel-switching while others have prohibited it making implementation of the rebate likely to be uneven across states.
Learn more about the heat pump rebate here.