States may apply for grants to develop and implement comprehensive home energy retrofit programs. Each state will then provide rebates to homeowners and popular rebate hubs for whole-house energy-saving retrofits. These projects must have begun on or after the date of enactment (August 16, 2022) and completed by no later than September 30, 2031. 

States and Indian Tribes may apply for grants to develop and implement a HEEHR program. Eligibility for these programs will be limited to LMI households with a total annual income less than 150% of the median for the area, as well as multifamily building owners with more than 50% LMI residents. If income verification is included at the point-of-sale, HEEHR programs would also allow for instant rebates to be applied upfront.

Rebates for energy efficiency improvements include: 

The IRA modifies and extends existing tax credits through 2032 for residential homeowners. Such a long window provides ample opportunity to take advantage of all the ways to save. For example, the Energy Efficiency Home Improvement Credit has increased to a 30% credit (up to $1,200 per year) that can be applied to projects such as rooftop solar, home energy audits, efficient water heaters and heat pump water heaters, central air conditioning and more. 

It’s no secret that the future of transportation is being shaped by electric vehicles. The IRA will accelerate this transition through tax credits and grants. Here are some of the most notable ones:

• Establishes manufacturer tax credits for producing battery cells and modules that will reduce the overall cost of an EV

• Restructures the existing Clean Vehicle Tax Credit for consumers (i.e., eliminates the previous manufacturer quota, which phased out the tax credit for manufacturers as they neared 200,000 clean vehicles sold)

There are several provisions focused on decarbonization or greenhouse gas (GHG) reduction.

• GHG Reduction Fund (EPA): New fund to invest up to $27 billion to rapidly deploy low- and zero-emission technologies in disadvantage communities. These funds will go to non-profit, state and local financing institutions that also leverage investments from the private sector. 

With nearly $370 billion in funding for climate and energy initiatives there are a lot of exciting opportunities in the bill. A few other notable areas include: 

• State-based Home Energy Efficiency Contractor Training Grants that reduce the cost of training as well as provide testing and certification.

• Tax credits over a period of 10 years for qualifying facilities producing renewable energy to promote new wind, solar, battery storage, etc.