Inflation Reduction Act: Energy-Efficient Rebates for NC Residents

The Inflation Reduction Act is designed to tackle climate change head-on, helping people reduce their carbon footprint and save money. It offers up to $14,000 in tax credits and rebates for homeowners to make their properties more energy-efficient.

What Is the Inflation Reduction Act?

The IRA, signed into law in August 2022, addresses taxes, healthcare, and climate initiatives. The law includes a non-business energy property credit to help North Carolina homeowners make energy-efficient home improvements, including plumbing, heating, cooling, and electrical upgrades.

How Will This Affect Me?

The savings provided by the Inflation Reduction Act will reach communities across North Carolina, lowering expenses for families through:

• Reduced energy costs and rebates from purchasing energy-efficient appliances, including heat pumps, water heaters, clothes dryers, and more.
• Rebates on repairs and improvements to increase energy efficiency.
• Tax credits cover 30% of the costs of installing solar panels.
• Reduced energy costs and rebates from purchasing energy-efficient appliances, including heat pumps, water heaters, clothes dryers, and more.

The act also provides affordable housing unit improvements like clean energy and electrification.

What Are the Available Rebates?

There are two distinct rebate programs. The HOMES rebate program helps residents make their entire homes more energy-efficient. The High-Efficiency Electric Home Rebate Program, or HEEHRP, offers rebates for low and middle-income families to electrify their homes.

Through tax credits and rebates, North Carolina residents can receive significant savings:

• Up to $8,000 for an ENERGY STAR® qualified heat pump
• Up to $1,600 for air sealing, ventilation, and insulation
• Up to $2,500 for improving electrical wiring
• Up to $600 each, with an annual cap of $1,200, for a qualifying air conditioner or gas furnace
• Up to $2,000 with a qualified heat pump or boiler

There is a $14,000 maximum benefit per home and an additional $500 for qualified contractor incentives. Some of these federal incentives are available immediately, while others don’t kick in until January 1, 2023. Still, more will be rolled out over the next 12 to 24 months.

Qualification & Eligibility Is Based on Household Income

States are administering this act individually, so availability and eligibility may vary. Because of this, it is recommended that you speak with a tax professional to ensure that you meet the rebate’s requirements. Your eligibility and the rebate amount you will receive depend on your household income:

• 100% of the system purchase price qualifies for the rebate if your household’s income falls below 80% of your area’s median income
• 50% of the system purchase price qualifies for the rebate if your household’s income falls within 80% to 150% of your area’s median income
• If your household income is above 150% of your area’s median income, your home does not qualify for the rebate

What Changes Can I Make To Get the Rebate?

There has never been a better time to make energy-efficient improvements to your North Carolina home. Here are just some of the upgrades enabled by the act.

• Installation of ENERGY STAR® windows, doors, and skylights
• Purchase and installation of highest efficiency tier central air conditioners and other qualified electric, gas, and propane HVAC systems
• Electrical upgrades that promote energy efficiency, including panel upgrades
• Home energy audits
• Installation of an electric heat pump and heat pump water heater

Unsure where to begin? Ask your power company or a professional heating, cooling, and electrical company like Acosta Heating, Cooling & Electrical to help upgrade your heating or cooling system or electrical system to one that meets the new standards and would make you eligible for the tax credit. You can also consult the government’s Clean Energy webpage for more information.

Moving Toward Greater Energy Efficiency With the IRA

The Inflation Reduction Act is the country’s most significant clean energy investment ever made. Its crucial incentives will make the transition to clean energy and a low-carbon life easy and financially savvy for all North Carolina residents.

While some incentives are available for DIYers, others require you to work with a professional installer. Backed by over 50 years of service, Acosta Heating, Cooling & Electrical delivers high-quality home improvement services to residents throughout the greater Charlotte, NC, area.

Contact us online or at 704.665.5998 today to learn more about the IRA or schedule services.