The Inflation Reduction Act (IRA) was signed into federal law on August 16, 2022, offering funding, programs, and incentives to accelerate the transition to clean energy. Specifically, this bill aims to invest in energy production and reduce carbon emissions in the United States. 

Under IRA, LREC members can potentially claim extra tax credits and rebates, in addition to what LREC already offers. Energy efficient items covered that match LREC’s current rebates include: an air conditioning unit, water heater, heat pump system (geothermal/air source), and an electric vehicle (EV) and charger. Below are stackable rebate opportunities:

Stackable Rebates & Opportunities

LREC ProductCostLREC RebateIRA Tax CreditMN State FundingCost (Approx.)
Solar 3.8 kW small array$11,900.00N/A30% of total costN/A$8,330.00
Solar 7.6 kW large array$19,000.00N/A30% of total costN/A$13,300.00
Heat Pump Water Heater 50 gal$1,950.19$500.0030% up to $2,000/yrN/A$1,015.33
Heat Pump Water Heater 85 gal$2,935.35$500.0030% up to $2,000/yrN/A$1,704.75
Ductless ASHP
> 1 Ton ≥ 15.2 SEER2 & ≥ 8.1 HSPF2
N/A$500.0030% up to $2,000/yrUp to $4,000N/A
Ducted ASHP
≥ 14.3 SEER2 & ≥ 7.5 HSPF2
N/A$750.0030% up to $2,000/yrUp to $4,000N/A
Ducted ASHP
≥ 15.2 SEER2 & ≥ 8.1 HSPF2
N/A$1,000.0030% up to $2,000/yrUp to $4,000N/A
Geothermal HP, Closed LoopN/A$400/ton*30% of total costN/AN/A
EV Charger 7.7kW ZEFNET 40$895.00$500.0030% up to $1,000/yrN/AN/A
EV Charger 11.5kW ZEFNET 60$1,129.00$500.0030% up to $1,000/yrN/AN/A
New EVN/AN/AUp to $7,500Up to $2,500N/A
Used EVN/AN/A30% up to $4,000Up to $600N/A
*Max $4,000

Additional Resources

As IRA continues to evolve and be updated, the following websites can be utilized for details and guidelines:

Please note that information with IRA is continually being updated. LREC will share more information as it becomes available to us.