The Inflation Reduction Act set aside a $4.3 billion budget, with the money allocated to individual states for disbursement. Funding will vary from state to state, and eligibility is income-based.
For example, the High-Efficiency Electric Home Rebate Act covers 100 percent of electrification project costs (up to $14,000) for low-income households and 50 percent of costs (up to $14,000) for moderate-income households.
Here’s how some of those rebates would work:
- $8,000 for a heat pump for space heating
- $4,000 for an upgraded breaker box
- $2,500 for upgraded electric wiring
- $1,750 for a heat pump water heater
- $1,600 for insulation, air sealing, and ventilation
- $840 for an electric stove, cooktop range, or oven
- $840 for an electric clothes dryer
The rebate program is not available to all households. Because the funds are being allocated to state offices, and each state gets to decide to a certain degree how to distribute the money, it will take some time to fully implement the rebate program.
The tax credits, in contrast, are in place right now and will continue to be for the next decade.
