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 Product | Cost | LREC Rebate | IRA Tax Credit | MN State Funding | Cost (Approx.) |
| Solar 3.8 kW small array | $11,900.00 | N/A | 30% of total cost | N/A | $8,330.00 |
| Solar 7.6 kW large array | $19,000.00 | N/A | 30% of total cost | N/A | $13,300.00 |
| Heat Pump Water Heater 50 gal | $1,950.19 | $500.00 | 30% up to $2,000/yr | N/A | $1,015.33 |
| Heat Pump Water Heater 85 gal | $2,935.35 | $500.00 | 30% up to $2,000/yr | N/A | $1,704.75 |
| Ductless ASHP > 1 Ton ≥ 15.2 SEER2 & ≥ 8.1 HSPF2 | N/A | $500.00 | 30% up to $2,000/yr | Up to $4,000 | N/A |
| Ducted ASHP ≥ 14.3 SEER2 & ≥ 7.5 HSPF2 | N/A | $750.00 | 30% up to $2,000/yr | Up to $4,000 | N/A |
| Ducted ASHP ≥ 15.2 SEER2 & ≥ 8.1 HSPF2 | N/A | $1,000.00 | 30% up to $2,000/yr | Up to $4,000 | N/A |
| Geothermal HP, Closed Loop | N/A | $400/ton* | 30% of total cost | N/A | N/A |
| EV Charger 7.7kW ZEFNET 40 | $895.00 | $500.00 | 30% up to $1,000/yr | N/A | N/A |
| EV Charger 11.5kW ZEFNET 60 | $1,129.00 | $500.00 | 30% up to $1,000/yr | N/A | N/A |
| New EV | N/A | N/A | Up to $7,500 | Up to $2,500 | N/A |
| Used EV | N/A | N/A | 30% up to $4,000 | Up to $600 | N/A |
Additional Resources
As IRA continues to evolve and be updated, the following websites can be utilized for details and guidelines:
- To help individuals figure out what tax credits are available to them, the Department of Energy created the Energy Savings Hub. This is a great resource to help determine was is and isn’t covered with IRA.
- It is estimated that IRA will provide American households with an average of $10,600 to electrify. To see an estimated amount you can receive from IRA, visit Rewiring America.
- National Rural Electric Cooperative Association: Inflation Reduction Act of 2022 Information
- IRS: Inflation Reduction Act of 2022
- IRS: Fact Sheet
- US Department of Energy: Clean Energy Tax Credits for Consumers
- National Resources Defense Council: Consumer Guide to the Inflation Reduction Act
- Energy.Gov: Home Energy Rebate Programs
Please note that information with IRA is continually being updated. LREC will share more information as it becomes available to us.