What is the Inflation Reduction Act?

On August 16, 2022 the Inflation Reduction Act (IRA) was signed into law. This new law provides unprecedented funding for tax credits and rebate programs aimed to reduce greenhouse gases (GHG). The IRA is the largest ever climate investment by the Federal Government in American history, projected to reduce GHG by 31-44% below 2005 levels by 2030. The IRA will also bring energy bill relief to U.S. Households by incentivizing the adoption of more effieicnt, all-electric appliances. 

The programs with the biggest direct impact on our electrification services will be the High-Efficiency Electric Home Rebate Program (HEEHRP)*, HOMES Rebate Program*, and the extension and enhancement of the 25C tax credit, described below. 

Energy Efficient Home Improvement Tax Credit
​25C Tax Credit

• A 10-year extension and expansion of existing 10% tax credit to 30%
• Begins with tax year 2023 (January 1, 2023), claim credit on your 2023 taxes
• Up to $600 maximum per item: breaker panel, insulation with maximum of $1,200 tax credit
• However, tax credit increases to $2,000 for buying and installing qualified heat pump
  • The heat pump must meet or exceed the highest performance tier set by the Consortium for Energy Efficiency (CEE).
• Households may claim annually through 2032

View Qualifying Equipment

* These rebate programs await state opt-in and guidance. For NYS, guidance is expected in Summer of 2023.
** Always speak with your accountant to see if your particular tax situation qualifies.