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

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

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South Portland

Highly recommended. Our heating usage is now less than half what it was before we had our roof insulated. Evergreen was knowledgeable, friendly, and left no trace they were ever in our house. Not only is our heating bill much lower now, but our home is generally more comfortable year-round with less temperature fluctuations. Money well spent.

RC Lations

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

We just finished a large project of air sealing and reinsulating our 1890s basement and attic which had been completely renovated 8 years ago but still felt cold and lacked proper energy assessment and corrections. We met with Justin in December and were very impressed with his knowledge, professionalism and communication skills and knew Evergreen was who we wanted to work with. Dave was our on hands project manager and was excellent. The office staff has been quick to respond and helpful as well when needed.

Emily Gallant

We are thrilled with the job Evergreen did to transform our 213 year old home into a warm, draft-free, cozy space. The entire team led by Bruce was prompt, courteous, knowledgeable, and hard working. If Evergreen could transform our home in this way, we are sure they would make a comparable difference in YOUR home!

Jonathan M.

Bridgton

From start to finish, our experience was incredible. Justin was extremely helpful. The crew was fast, friendly, and efficient. And most importantly, our home is WAY warmer and our heating is less costly. I'd highly recommend evergreen to anyone looking to upgrade their home!

John S.

South Portland

Really great experience from start to finish with Evergreen. They helped us prioritize what needed to be completed first, and has made a significant difference in our hearing costs already. Plus they were really friendly and considerate to work with!

Amy W.

Kennebunk

Evergreen removed and replaced the insulation in my attic. They did a great job!, Crew was excellent, and the whole thing went smoothly, and the attic was NOT easy to get into or work in, so kudos to some hard work done well!

Joel A.

Portland

Several years ago Brian Robinson evaluated the crawl space at my summer home on Islesboro where I knew moisture was becoming a problem. I had done quite a bit of work in the space many years prior with mixed results. When Brian offered some suggestions, they were ideas that incorporated work previously done, and would be a relatively low cost effort to improve the situation. He offered this advice over several phone conversations of some length, informally, and at no charge.

Cliff R.

Islesboro

Evergreen has a professional and reliable team of people who do excellent work. If you want the best of the best in the area, select Evergreen to accomplish your insulation needs.

Mary E.

St. George

I was extremely pleased with the professionalism and quality of service that I received from the Evergreen team. I met Richard to discuss options for insulation. I knew immediately that I wanted to do business with them because he did not try to over-sell extra services that I did not need. Dave was the project manager. He was not only kind, but very respectful of my home. I would highly recommend this company.

Darlyann M

Bath

Update 12/2018: Evergreen has completed Phase II of my house (insulating and installing air/moisture barrier on exterior walls, replacing old windows) and now that heating season is upon us, the difference is astonishing. The house is tight as a drum and so easy to keep warm. Worth every penny. Thank you all! Working with Evergreen was a positive experience from start (no charge energy audit) to finish (a MUCH more comfortable home). Brian Robinson spent a lot of time with me on the audit, explaining clearly what he was finding in my ca.

Rebekah W.

Rockport

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

My experience with Evergreen was excellent. From their thorough and thoughtful initial consultation to their detailed post-work visit, the team was professional, knowledgeable, and responsive. Their workmanship was top notch. Our home is now much warmer and more efficient. I highly recommend their services!

Douglas R.

Edgecomb

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