Lucky homeowners in Wisconsin, Michigan, and Washington, D.C., now have access to thousands of dollars in home renovation rebates through the Inflation Reduction Act.
The Home Efficiency Rebates program has gone live for residents of those three places, as states and territories (and the federal district) had to apply for specific funding requests from the program, which is now giving their 16 million-plus combined residents the opportunity to save up to $8,000 through upgrades.
The basics of the rebates recently launched in those areas are that all households are eligible, with the largest rebates going to lower-income households and projects that save the most energy.
To be eligible, a project must curb household energy usage by at least 20%. Inherent in the efficiency upgrades, then, is also saving big money on utility bills.
The nuances of the Inflation Reduction Act can be tricky, but the second of the two home improvement programs under the IRA is the Home Electrification and Appliance Rebates program, which ups the ante even more with up to $14,000 in incentives.
This program is already live in several places, including D.C. and Michigan — see a map here — and funding has already been approved for Wisconsin, with an expected launch later this year.
The biggest opportunity is for installing a cutting-edge heat pump. All homeowners can get up to $2,000 for installing one, with up to $8,000 possible for eligible low-income households.
Other upgrades on the table include up to $840 for an electric induction stove or an electric heat pump clothes dryer; up to $4,000 for installing an electrical panel; up to $2,500 for putting in electrical wiring; and $1,600 for weatherizing your home with insulation and other products.
President-elect Donald Trump has said he hopes to "rescind all unspent funds" allocated for the Inflation Reduction Act that makes these benefits possible, though. While that would need approval from Congress, the future of these incentives is unclear, and those interested may want to act sooner rather than later.
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Politics aside, it's a win-win for families who act in time, as these energy-efficient appliances will save major money in the future on electric bills. What's more, home weatherization will make living more comfortable as extreme weather like heat waves increasingly becomes the norm.
It's also great for the planet. For example, heat pumps and electric induction stoves severely reduce indoor and outdoor carbon pollution that contributes to the planet's warming.
The only thing that might be stopping residents of these states is finding out how to take advantage of all the rebates they're entitled to.
That's where the nonprofit Rewiring America comes in. Its interactive calculator is here to help homeowners navigate the IRA and access the biggest savings possible for upgrading their homes.
"In essence, the IRA creates an $8,000 bank account for every American household … if people figure out how to access it and use it," said environmental journalist Bill McKibben in comments to the press in 2023.
"The good news is that these technologies are better than the ones that they replace," he added.
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