This easy-to-use calculator tells you how much money you’ll receive from the Inflation Reduction Act

US President Joe Biden signed the big climate bill – the Inflation Reduction Act (IRA) – in August. It includes a host of rebates and tax credits to help Americans go electrified with the purchase of everything from electric vehicles to high-efficiency electrical appliances to heat pumps. If you’re ready to electrify but aren’t sure where to start, check out this easy-to-understand IRA savings calculator from Rewiring America.

Rewiring America is an electrification nonprofit whose “goal is to make electrification simple, measurable, and inevitable.” I’m going through the electrification process now, so the Inflation Reduction Act Calculator is my go-to. (We are in the process of purchasing a US-made Volkswagen ID.4, and Rewiring America has been invaluable in finding the information I need to make sure I qualify for a tax credit. )

I’m discovering in my electrification journey that I’m responsible for standing up for myself, because electricians, heat pump installers, and even car dealerships aren’t quite sure yet how tax credits and tax credits work. discounts.

But I found that they want to know, and they want to help me in turn, because everyone I work with wants to fight the climate crisis, so they are grateful when I share the information I find with them.

IRA Savings Calculator – the “Smith Family”

The IRA is still fairly new, so Rewiring America rightly denies:

We don’t yet know how or when the initial rebates will be implemented in each state, so we can’t guarantee final amounts or timing.

Here’s how the IRA savings calculator works: enter your zip code, landlord status (renters are also eligible), household income, tax filing status, and household size into the savings calculator IRA, then click “Calculate!” It then displays your custom incentives and separates the tax credits from the initial rebates (i.e. rebates).

I created the “Smith family” as a case study: a hypothetical family of four, owner, household income of $100,000, joint tax filing, zip code 05001 (that’s Vermont). The Smiths are eligible for $14,000 in upfront rebates and $7,550 in available tax credits.

Because upfront discounts (discounts) are based on a percentage of area median income, Smith’s area median income is $90,100 because they live in the 05001 zip code area. The area median income can be found using this fannie mae area median income finder.

Source: Rewiring America

Initial discount on a new electric range

The High-Efficiency Electric Home Rebate Act (HEEHRA) provides point-of-sale consumer rebates to enable low- and middle-income US households to electrify their homes.

So if the Smith family wanted to replace their gas stove with a new electric stove, for example, they would be entitled to 50% of the electric/induction stove costs up to $840, upfront, because their income ( $100,000) is greater than 100% of area median income ($90,100) in their 05001 postal code:

For low-income households (less than 80% of area median income), HEEHRA covers 100% of the cost of your electric/induction range up to $840. For moderate-income households (between 80% and 150% of area median income), HEEHRA covers 50% of the cost of your electric/induction cooker up to $840.

Total HEEHRA rebates on all qualified electrification projects are capped at $14,000.

Rewiring America also provides an easy-to-understand online guide to the IRA called “Go Electric!” (now).” You can access it here.

Read more: Here’s how new US tax credits and rebates will work for clean energy home upgrades

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