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 CreditCost (Approx.)
Solar 3.8 kW small array$11,900.00N/A30% of total cost$8,330.00
Solar 7.6 kW large array$19,000.00N/A30% of total cost$13,300.00
Heat Pump Water Heater 50 gal$1,776.50$500.0030% up to $2,000/yr$893.55
Heat Pump Water Heater 85 gal$2,551.11$500.0030% up to $2,000/yr$1,435.78
Ductless ASHP ≥ 8.2N/A$500.0030% up to $2,000/yrN/A
Ducted ASHP ≥ 8.2N/A$500.0030% up to $2,000/yrN/A
Ducted ASHP ≥ 9.0N/A$800.0030% up to $2,000/yrN/A
Geothermal HP, Closed LoopN/A$400/ton*30% of total costN/A
EV Charger 7.7kW ZEFNET 40$895.00$500.0030% up to $600/yr$276.50
EV Charger 11.5kW ZEFNET 60$1,129.00$500.0030% up to $600/yr$440.30
New EVN/AN/AUp to $7,500N/A
Used EVN/AN/AUp to $4,000N/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.