If you’ve been planning on making some green home improvements around your house, you might be happy to hear you could have money coming your way through the Inflation Reduction Act. Haven’t heard of it? Then you might be surprised to hear it was signed into law 7 months ago! So, what is it?
The inflation reduction act
The newly signed Inflation Reduction Act includes over $4.5 billion in funds for states to provide rebates for the purchase of new electric appliances including cooktops, ranges, and wall ovens. It also includes rebates and other tax credits for larger purchases such as energy-efficient heat pumps and electric vehicles. So, the act can help save money if you’re looking to replace your current gas appliances. And if you must upgrade your home to accommodate a new electric range, you could also receive a tax credit of up to $4,000 for the expenses. You may also get an additional $2,500 if you have to upgrade your current electrical wiring.
Gas appliances can carry many hidden dangers that could affect you and your family. On the other hand, electric appliances are cleaner, can keep the home healthier, and are overall safer. Plus, you don’t have to worry about any pollutants or combustion from electrical appliances. Induction appliances will also be covered in the electrical appliance change. Induction cooktops use magnets to heat metal cookware and cook in a far superior manner than any electrical appliance out there today. Not to mention they take less time to heat up as well as being able to cook evenly and precisely.
Though there’s a continued misconception that electrical appliances don’t cook as well as gas, the technology has improved tenfold and couldn’t be further from the truth. While using gas does have its own benefits in cooking, there’s no doubt electricity is safer, cleaner, and overall, almost better for any home. The kitchen is a shared space where memories are made, a spot for children to eat and share experiences, it’s not just some random food workspace it used to be in years past. This new Inflation Reduction Act is here to help families go green, stay safe, and help the environment.In short, if you were ever looking for a sign to go green and add some environmentally friendly appliances, this is it
How will i know if i qualify for a rebate?
In the end, this will all depend on where you live and how much you earn. Since each state will set their own overall rules and regulations, you’ll most likely have to see if there are certain rules you need to work with. In the Inflation Reduction Act, it states the rebate is going to be dependent on how the household income compares to the median household income (HHI) in each area within your state and is to be determined solely by your state.
The IRA does mention the following:
- Not more than $1,750 for a heat pump water heater
- Not more than $8,000 for a heat pump for space heating or cooling
- Not more than $840 for an electric stove, cooktop, range, oven, or electric heat pump dryer.
Where do i apply for the rebate?
There’s still a lot to work out, the Department of Energy needs to first provide the funding to each state, then those states need to set up the program for rebates. So, there won’t be a set time or place until the respective state announces it. However, the Department of Energy urges homeowners and those interested in the rebate to visit the Database of State Incentives for Renewables & Efficiency to track and see how programs are progressing in each state. In California, the program may not fully launch until 2024.
Regardless, you’ll have to follow all the rules set according to each state. Just be sure to save all paperwork when purchasing a new electrical appliance. This goes for any paperwork in the installation process for said qualifying appliance. When it’s all said and done, homeowners will either receive the rebate during the sale/purchase of a new appliance or in some form of a check. It’s also possible to receive it in the form of a tax credit when you file taxes the following year.
Am i able to replace an old electric appliance with a new one?
The Inflation Reduction Act does not say you can’t qualify if replacing an old electric range or cooktop. But it will ultimately depend on where you live. It all varies from state to state so it all depends on how your state determines to share and use those funds. So, just keep checking with your state before making a purchase.
To be clear, induction cooktops and ranges do qualify. So, if your state does allow it, you should be able to go from an old electric appliance to induction. And certainly, you can go from a gas-powered appliance to an electric induction appliance.
What should you do now?
Well, if you’re in California, the IRA is not expected to launch until 2024 as mentioned. So, you have a few options for being in any state. The first is to just wait and see how the program gets finalized in your state, to then move forward with if you’d like to purchase or modify your home. The second is to go ahead and purchase your appliances and have them delivered and installed to your liking. The last option is to simply plan and possibly order those appliances and schedule them with whatever lead time the project length may take to get finalized so you can move forward with your rebates in time. Regardless, if you do buy appliances, be sure to save all your paperwork so you can show proof of modifications.
Are you looking to modify your kitchen or switch from gas to electricity? Then look no further than Airport Home Appliance, Northern California’s leading provider of in-stock appliances! With a vast selection of productions available both in-store and online, our showrooms are the ideal spot to start your appliance journey. Browse our inventory at your leisure and find the perfect appliance that meets your needs, today.
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