Inflation Reduction Act | 2023 Minnesota Homeowner Savings

Inflation Reduction Act – 2023 Minnesota Homeowner Savings

The 2023 Inflation Reduction Act includes a number of tax credits and rebates that improve home efficiency and prioritize electricity in Minnesota homes. As a result, homeowners in Minnesota can expect to see the long-term benefits of reduced energy costs. There are a number of incentives, including tax credits and tax rebates. (Note: A number of the rebates will not be available until later in the year.)

Ways for Homeowners to Save with the Inflation Reduction Act

Electrical Rebates:

Electric Panel and Wiring Rebates: Eligible homes can use the high-efficiency tax credit for electric panel upgrades and wiring. Low-income households can take advantage of the $4,000 rebate for electrical panels and $2,500 for wiring (or half that for moderate-income households).

Heat Pump: HVAC Heat pumps can cut your energy costs by as much as 50 percent, but run around $10,000 to $18,000. As noted above, there will be a $2,000 tax credit for those starting in January, and new rebates for income-qualified homes. There is also a $2,000 tax credit that can be used toward a heat pump water heater.

Solar panel rebates: Solar panel systems can be expensive to install, but many states and localities offer rebates to encourage the adoption of renewable energy. These rebates can help offset the upfront cost of installing solar panels.

Electric vehicle (EV) rebates: Some states and localities offer rebates for the purchase of electric vehicles as a way to encourage the adoption of this clean transportation option. These rebates can range from a few hundred dollars to several thousand dollars, depending on the specific program.

Smart thermostat rebates: Smart thermostats can help homeowners save energy by automatically adjusting the temperature in their homes based on their schedules and preferences. Some utility companies offer rebates for the purchase of smart thermostats to encourage their adoption.

Home Improvements

Adding insulation: Insulation can help keep your home warm in the winter and cool in the summer, resulting in energy savings and lower energy bills.
Sealing air leaks: Drafty homes can be a major source of energy loss, so sealing air leaks can help reduce energy consumption and save money on energy bills.
Upgrading windows and doors: Energy-efficient windows and doors can help keep your home more comfortable and reduce energy consumption.
Installing energy-efficient appliances: Energy Star-certified appliances use less energy and can save homeowners money on their energy bills. Low-income households can get an $840 credit toward an electric stove. Besides lowering greenhouse gas emissions and improving energy efficiency, this can also improve your health.
Adding solar panels: Solar panels can provide a clean and renewable source of electricity for your home, which can help reduce energy costs and reduce your carbon footprint.

Five Ways to Take Advantage for 2023 Rebates, Tax Credits and Incentives

Conduct a home energy audit: An energy audit is a process in which an expert assesses the energy efficiency of your home and recommends upgrades that can save you money on energy bills. The Inflation Reduction Act offers a partial tax credit for energy audits, so it’s a good idea to consider one if you’re interested in making energy-efficient improvements to your home.
Educate yourself on how tax credits and rebates will be implemented: Some tax credits are extensions of existing ones, while others are new and will require implementation. Rebates, which typically offer either point-of-sale discounts or partial refunds to consumers, may take longer to go into effect.
Learn about energy-efficient home improvements: These improvements can include adding insulation, sealing air leaks, upgrading windows and doors, and installing energy-efficient appliances. The Energy Efficient Home Improvement Tax Credit, for example, offers a credit of 10% of the cost of eligible improvements, up to a maximum of $500. This credit is available for projects completed between January 1, 2022 and December 31, 2022.
Take advantage of electric rebates: The Inflation Reduction Act also includes rebates for electric appliances such as refrigerators, washing machines, and dryers. These rebates are typically offered by utility companies and are designed to encourage the adoption of energy-efficient appliances. To find out what rebates are available in your area, you can contact your local utility company or visit the Department of Energy’s website.
Consider purchasing an electric vehicle (EV): The credit is worth up to $7,500, depending on the size of the vehicle and its battery capacity.

Whole House Energy Rebates

The Whole-House Rebates (HOMES) program provides financial incentives for energy efficiency upgrades that improve the overall energy performance of single-family homes (SFHs) or multi-family buildings (MFBs).

Depending on the level of energy savings achieved, owners may be eligible for rebates of 50%-80% of project cost, or alternatively, a reimbursement per kilowatt-hour of energy saved. The program is designed to help homeowners or building owners save money and reduce their environmental impact.

Dean’s Handles the Rebate Process

Dean’s Home Services provides filing, tracking, and ensures that customers are able to take advantage of all rebates and tax incentives that are available to them.

Contact Dean’s Home Services, the team is highly knowledgeable about the various rebates and tax incentives that are available for energy efficiency upgrades, such as the Whole-House Rebates (HOMES) program. They are able to help customers understand the requirements for these programs and provide guidance on how to apply for them.

One of the key benefits of working with Dean’s Home Services is that they handle all of the paperwork and tracking on behalf of the customer. This includes filing the necessary forms and documents, following up with the relevant agencies to ensure that applications are processed in a timely manner,