New federal energy incentives to roll out in 2023
When Congress passed the Inflation Reduction Act (IRA) in 2022, it authorized billions of dollars in consumer programs to help install energy-efficient technologies, purchase an electric vehicle, or electrify other processes in your home. The average homeowner could qualify for more than $10,000 in tax credits or other incentives, meaning there's no better time to start planning for energy upgrades.
What you need to know
- Most of these programs will not be implemented until sometime in 2023. Once the programs kick in, most will last at least 10 years.
- Cass County Electric Cooperative (CCEC) already offers a robust set of rebates for electric heating systems, water heaters, and vehicle chargers. Call our offices or visit our website to learn more!
- You’ll unlikely qualify for all the tax credits and incentives at once. If you’re looking for energy-related purchases or home improvements, come up with a long-term plan that will allow you to take advantage of the incentives over time.
- While CCEC knows energy efficiency, heating and cooling systems, and electric vehicles, we’ll leave tax advisement to the professionals. Consult with a tax/financial advisor and ensure you know the income limits and other requirements before making any major decisions.
- CCEC has a team of energy experts to provide information and help you make the best decision for your home. Just because a tax credit is in place doesn’t mean a specific system or technology is right for your unique needs. If you have a question, ask us!
6 upcoming incentives to consider
Incentive levels and availability are dependent on income. Other requirements may be applicable.
Heat pumps
There are massive incentives for households to install air-source heat pumps. Up to $8,000 in upfront discounts and up to $2,000 in tax credits are available. Geothermal heat pumps qualify for a 30% tax credit.
Weatherization
Weatherization efforts may qualify for up to $1,600 in upfront discounts and $1,200 in tax credits, depending on income. This includes air sealing, ventilation, and upgrades to insulation, doors, and windows.
Electric panel
Upgrading your electrical panel (sometimes called breaker box) could qualify for up to $4,000 in upfront discounts and up to $600 in tax credits, depending on income levels.
Electric wiring
Electric wiring upgrades could qualify for up to $2,500 in upfront discounts depending on income levels.
Electric vehicle
Thinking of purchasing an electric vehicle (EV)? You may qualify for up to $7,500 in tax credits for a new EV or up to $4,000 for a used EV.
Electric stove
Up to $840 is available to purchase and install an electric stove.
There are many other rebates and tax credits, including whole home energy reduction efforts, battery storage installation, electric stoves, rooftop solar, and more!