How much money will you get with the Inflation Reduction Act?

All tax credits are available now, and the rebates should become available by the end of 2023. We don't know exactly when the rebates marked “late 2023” will be available, because it will depend on how each state rolls out its incentive program. Our best guess is that those upfront discounts will be available mid-end of the year. For an overview of incentives you can use right now, see the FAQ: Are there tax credits I can use right now if I don’t want to wait till next year?

In many cases, no! The IRA incentives are designed to increase access to clean technology. For households with lower incomes, 100% of appliance and installation costs are discounted at purchase, meaning you could install efficient electric appliances at no cost, with no spending.

Middle-income households do have to spend in order to access savings, but up to 50% of appliance and installation costs can be covered through electrification rebates, and you can use tax credits to cover some of the remaining gap.

Highest income households are not eligible for electrification rebates, so you will have to pay full price for appliances and installation — but tax credits on the back end could recoup around 30% of your costs.

Yes! The upfront electrification rebates and electrification tax credits can all be used by renters. Many of these upgrades (including window-unit heat pumps, electric stoves, and heat pump clothes dryers) are portable, so renters can bring them to their next homes and will not have to leave any savings behind. Renters are also eligible for the used and new EV tax credits. And although they are not exactly consumer-facing, renters will benefit from the IRA’s $1 billion investment in affordable housing energy upgrades and the new tax deduction for efficiency upgrades in commercial buildings (including apartment buildings).

Renters can also subscribe to community solar — which will be cheaper because of the IRA supply-side renewable energy incentives.