On August 16th, 2022, the Inflation Reduction Act was signed into law, approving over $700 billion in federal spending on issues ranging from healthcare and transportation to residential clean energy programs. You could save $10,000 or more through these incentives, depending on your income bracket.
That’s worth knowing about, we’d say!
Savings from the Inflation Reduction Act (or the IRA from here on out) appear in a variety of ways within the home service industry, including:
Customers in Colorado may be able to take advantage of one or all of these incentives. To find out if you qualify, keep reading!
Hey there! If you want an even easier way to find relevant incentives, call your friends at Cooper!
The Cooper Green Team knows the IRA backward and forward. We can help you make sense of the rebates, tax credits, and incentives available to you. Even better, we install the all-electric, clean-energy systems that the IRA was designed for!
Tax Credits Available to Colorado Homeowners through the IRA
Homeowners can see substantial tax breaks in 2023 and beyond by taking advantage of the following tax credits. Some of these credits have been around for a while. But the IRA has made substantial changes to them, increasing the amount homeowners can write off and extending the time the tax breaks can be used (out to 2032 in some cases).
- 25C — Non-Business Energy Property Credit: Homeowners can claim 30% of the cost of qualified products (all-electric appliances and HVAC systems) until 2032 (up to $1,200 per year or up to $2,000 for heat pumps).
Rebates Available to Colorado Homeowners through the IRA
The IRA’s new tax credits offer plenty of value for homeowners. But the real savings come in the form of new system rebates. These are some of the best rebates we’ve seen from a federal program. Once you see them, we think you’ll agree!
Before we introduce these rebates, however, we must share who qualifies for them. Most of the rebates available through the IRA are for homeowners who fall within or below their property’s Area Median Income (AMI).
You’re probably wondering what constitutes low and median incomes. This varies from place to place across Colorado. But if you’re curious, you can quickly look it up with the help of the Fannie Mae Area Median Income Lookup Tool.
The next step is to see how your income stacks up to homeowners in your area. You’ll most likely qualify for these rebates if you’re between 80% and 150% of your area’s AMI. If you fall below 80% of the AMI, you’ll almost certainly qualify for the highest possible rebates.
Available Home Service Rebates
Many homeowners think the IRA’s rebates are exclusive to new HVAC system installations. The truth is, specific plumbing and electrical systems are also included on that rebate list!
Let’s take a look:*
- All-electric heat pumps: Up to $8,000
- Heat pump water heaters: Up to $1,750
- Electric stove/cooktops: Up to $840
- Heat pump clothes dryer: Up to $840
- Breaker box: Up to $4,000
- Electric wiring: Up to $2,500
- Weatherization: Up to $1,600
*These numbers are subject to change when HEEHRA rolls out in late 2023
Fuel Switching Incentives Available to Colorado Homeowners through the IRA
Additional funding from the IRA has been earmarked for states that offer fuel-switching incentives. In other words, if a homeowner has a gas stove installed, certain states will offer rebates as incentives to switch to an all-electric stove.
Colorado’s stance on fuel switching has evolved quite a bit. And 2023 seems to be when the state will finally offer such fuel-switching incentives. We may have more answers for you soon, so call us to see if these rebates are available to you!
Want to take advantage of savings from the Inflation Reduction Act? Give Cooper a call today!
Give the Cooper Green Team a call at (720) 605‑7270, and we’ll answer all of your questions about the IRA! We’re happy to walk you through the rebate process for new electric heat pumps, water heaters, electric panel installations, and more. If you’re ready to start, call Cooper’s professionals today!