The Inflation Reduction Act: What We Know and How to Prepare

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The Inflation Reduction Act of 2022 (IRA) was signed into law this past August, which is exciting news for Mainers who want to upgrade their home’s energy efficiency. The IRA offers generous incentives that make energy efficiency home improvements like insulation and  air sealing, more affordable to homeowners. Improvements like these save energy, which means they can reduce your high energy bills and contribute to a cleaner environment at the same time. 

There’s a lot in the Inflation Reduction Act and there are still details emerging about many of its programs. Today, we’re going to break down everything we know about Inflation Reduction Act rebates and incentives and how Maine homeowners can take advantage of them. 

The Inflation Reduction Act of 2022: A Summary

The Inflation Reduction Act is a landmark federal law that was signed into United States law in August of 2022. The law directs billions of dollars in federal spending toward reducing carbon emissions and is the largest investment the United States has ever made in climate change. The funds will be delivered through a variety of avenues, including tax credits and rebate programs for consumers. 

How Can the Inflation Reduction Act Save You Money? 

Maine homeowners can save money on a variety of energy efficiency and clean energy projects by taking advantage of IRA energy efficiency and renewable energy incentives including: 

  • The Solar Investment Tax Credit 

  • The Energy Efficiency Home Improvement Tax Credit 

  • The HOMES (Home Owner Managing Energy Savings) Rebate Program 

  • The High-Efficiency Electric Home Rebate Program

The Solar Investment Tax Credit (ITC)

The ITC, also known as the federal solar tax credit or the IRA renewable energy tax credit, allows homeowners who install solar panels to reduce their federal tax liability by 30% of their installation costs. There is no cap on the solar tax credit and it can make renewable energy installation significantly more affordable for your home. The 30% solar tax credit is available from 2022 until 2032. 

The Energy Efficiency Home Improvement Tax Credit 

The Energy Efficiency Home Improvements Tax Credit is a revival of an old tax credit you might be familiar with—the Nonbusiness Energy Property Tax Credit. The new IRA energy efficiency credit has been increased from 10% to 30% (with a $1,200 annual cap on most services) and will be available from 2023 until 2032. Qualifying projects completed in 2022 are eligible for a retroactive credit but at its original 10% value. 

Many energy efficient home upgrades qualify for the IRA energy efficiency tax credit, including: 

The HOMES (Home Owner Managing Energy Savings) Rebate Program 

The HOMES rebate program offers rebates for energy efficiency upgrades with modeled energy savings of 20% or more. Qualifying upgrades include insulation, air sealing, HVAC upgrades, and more. 

  • Projects with modeled energy savings of 20% or more qualify for a $2,000 rebate

  • Projects with modeled energy savings of 35% or more qualify for a $4,000 rebate

  • Rebate amounts are doubled for low and moderate-income households 

These rebates cannot be combined with other federal grants or rebate programs. 

The High-Efficiency Electric Home Rebate Program

The High-Efficiency Electric Home Rebate Program will provide energy efficiency rebates to low and moderate-income households. The program offers rebates for a variety of services, including a $1,600 rebate for insulation, air sealing, and ventilation. Additional rebates are available for heat pumps, energy efficient appliances, and electrical system upgrades. There is a $14,000 maximum rebate amount per household and the rebates cannot be combined with other federal grants or rebate programs. 

How Do the Inflation Reduction Act Rebates Work? 

The HOMES rebate program and the High-Efficiency Electric Home Rebate program will be implemented by individual states. Each state will receive funding from the federal government and its department of energy will be responsible for distributing the funds. Maine will receive a total of $71,664,970

It will still be a while before this rebate program is available to homeowners—DOE expects funding to be available to the states by the spring of 2023 and to the public later that year. Funding is expected to go quickly and it will be important to act fast if you want to take advantage of these savings! We will be providing updates as more information on how to claim Inflation Reduction Act rebates becomes available. 

We Can Help You Take Advantage of the Inflation Reduction Act Savings 

The Inflation Reduction Act can help you cut energy costs in 2023 and beyond by making important energy-saving upgrades more affordable. Evergreen Home Performance can help you take advantage of these savings! We are a local insulation and energy efficiency company that has been helping Mainers improve their homes since 2006. We believe all homes should be safe, healthy, and comfortable, and we know we can improve our environment one house at a time. 

If you have questions about the Inflation Reduction Act for energy efficiency upgrades, give us a call. We can help you maximize your savings with IRA incentives, Efficiency Maine rebates, and financing for home improvements. 

Save on energy efficiency home improvements with tax credits and rebates. Call 207-594-2244> or contact us to learn more.

Find out how you can save with energy efficiency incentives. 

Call Evergreen Home Performance today! 207-594-2244

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RC Lations

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Melissa M.

Kennebunk

Working with Brian and with Nate and the rest of the crew was a pleasure. They made everything very easy and understandable. This was a major renovation and they were always at the ready with a lot of information. We had an extensive renovation on the basement which was a dirt basement and it came out beautifully. We can already tell from all of the insulation work what a difference it's made in sound and temperature. Brian worked with me on the rebates that are available when you do this kind of work. I would highly recommend this company to…

Valerie L.

Rockland

The Evergreen team was amazing from initial assessment and planning to the crew that came to complete the work. Our basement encapsulation is the best money we've spent on our house by far. The work was thorough and high quality. And what a wonderful group of people to work with. I highly recommend Evergreen!

Martha Bracy

The crew members from Evergreen Home Performance each made sure to greet us every day, while maintaining their distance in this time of the pandemic. Their work took a total of nine days, spread over three weeks. Even though they were working in multiple rooms of our house, as well as the basement and attic, they were unobtrusive and always cleaned up after themselves every day. The on-sight manager kept us informed of their daily schedule so we'd know which parts of the house they'd be working on.

Bob & Sue

Whitefield

Great team!

George S.

Bath

The folks at Evergreen did a great job fixing a rather major insulation problem in my house, which they helped identify with a great audit. When the work began, they were thorough, upbeat, and -- dare I say it -- efficient. I strongly recommend them.

Michael Williams

Led by Brian Robinson, the Evergreen Home Performance team just completed an insulation refit at my home. It was truly a great experience from start to finish, a period of time that was a fraction of the time that I originally anticipated due to the team's unbelievable work habits and professional knowledge of their tasks. As impressive were the communication skills and friendliness of each and every member of the team.

Anne W.

Rockport

Our basement was the eyesore of the house. I wanted to make improvements, but first needed to make structural, insulating and moisture mitigation improvements. Evergreen was professional and competent in taking on a complex project of not only encapsulation and insulation of basement and crawlspace, but completed needed improvements to the structural integrity of the wood floor platform above a crawlspace and brought in a concrete contractor to pour where there was once a rotting, tiered wood platform - replacing that area with a more functional and tight tiered concrete area.

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East Boothbay

I made the mistake of NOT hiring this company last year when I bought and renovated my home. I have brought them in now and what a difference. This group knows what they are doing. They take a complete look at everything and believe they can make your home more energy efficient. They are very professional in the way they approach problems and solutions. And they find ways to save me money. Don't bother with anyone else. Bring Evergreen in before you do anything. Let them assess your issues and give you the right solutions.

Shaw

Owls Head

Evergreen was so helpful in securing us Efficiency Maine funding for a big attic insulation project early this winter. They did all of the paperwork, and totally guided us through a vermiculite removal process that included a payment from a trust for the procedure. I could instantly feel the second floor being so much warmer than before. The boiler does not kick on nearly as frequently since they completed the job. It was worth every penny! Brian Robinson was so thorough throughout the whole process including a full walk through after the job had been completed.

Todd W.

Camden

I have always been impressed by the high level of service, quality of work, and excellent follow-through provided by Evergreen Home Performance in the three projects that they completed at the Wells Reserve at Laudholm over the past several years.

Paul D.

Wells

Very easy process, start to finish.  Friendly, professional, and really know their stuff.  They made some improvements to our condo and we were very happy with how it played out.  Would definitely recommend them.

Clayton Eames

Bryan, Dave and the entire Evergreen team are wonderfully professional, prompt and thorough. I enjoyed working with them and look forward to continued work as we upgrade our home! Thank you so much for your professionalism, fairness, time and diligence.

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Yarmouth

Professional, friendly and hard-working staff. The product/approach they use for insulation is top notch. We felt the difference immediately, both from added warmth and eliminating drafts. The team and management were easily available to answer our questions or coordinate meeting times. Highly recommended.

Kevin J.

Yarmouth

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