Page 111 - Inflation-Reduction-Act-Guidebook

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Funding Overview

Highlights include:

• Nearly $9 billion for states and Tribes for consumer home energy rebate programs,
enabling communities to make homes more energy efficient, upgrade to electric
appliances, and cut energy costs. The Department of Energy estimates that these historic
home energy efficiency and electrification consumer rebates, targeted to lower-income
consumers, will save households up to $1 billion annually.

• The Energy Efficiency Home Improvement Credit provides up to $3,200 annually in
tax credits to lower the cost of energy efficient upgrades by up to 30 percent,
including the purchase of heat pumps, insulation, efficient doors and windows, electrical
panel upgrades, and energy audits. Heat pumps alone can save households up to $500 in
energy costs every year.

• The Residential Clean Energy Credit provides a 30 percent tax credit to lower the
installation cost of residential clean energy, including rooftop solar, wind, geothermal,
and battery storage. The credit steps down to 22 percent by 2034. The Residential Clean
Energy Credit offers more households access to and freedom to choose renewable energy
that can lower monthly energy bills and cut air pollution from power plants.

• The New Energy Efficient Home Credit provides up to $5,000 in tax credits for each
new energy-efficient home and up to $1,000 for each unit in a multi-family building.
This credit incentivizes builders to lower monthly energy costs for future owners and
renters. Single and multi-family dwellings that meet Energy Star requirements are
eligible.

Programs Covered in This Chapter

IRA Tax
Agency Section Code Program Name Amount
Section
Department of the Treasury 13301 25C Energy Efficient Home Improvement Credit -

Department of the Treasury 13302 25D Residential Clean Energy Credit -
Department of the Treasury 13304 45L New Energy Efficient Homes Credit -
Home Energy Performance-Based, Whole-House
Department of Energy 50121 - $4,300,000,000
Rebates
Department of Energy 50122 - High-Efficiency Electric Home Rebate Program $4,500,000,000

Department of Energy 50123 - State-Based Home Efficiency Contractor Training $200,000,000
Grants

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