IRA Info

How Much Can You Save?

Rewiring America estimates that American households can receive an average of $10,600 in federal incentives to help convert from fossil fuel-powered appliances and technology to electric-powered replacements, which can save households an average of $2,000 a year on energy bills.

By inputting a few details about your household, you can get a free personalized estimate of how much you can save on efficient electric appliances and energy-saving technologies. You don't even need to register or share your email! Use the free calculator here.

Rewiring America Personal Savings Calculator

Inflation Reduction Act Information

Tax Credits

Residential Clean Energy Credit (25D):

  • There is a 30% tax credit with no income limits for installing residential solar panels. More Info IRS Info
  • Up to a $7,500 tax credit is available for purchasing new electric vehicles (EVs). Income limits are $300,000 for joint filers, $225,000 for heads of household, and $150,000 for single filers. Vehicles must have an MSRP under $80,000 for vans/SUVs and $55,000 for other vehicles. More Info
  • For purchasing used EVs under $25,000, there is up to a $4,000 tax credit or 30% of the sale price, whichever is less. Income limits are the same as for new EVs. More Info How to Qualify IRS Info

Energy Efficient Home Improvements Tax Credit (25C):

  • 30% tax credit for installing energy-efficient windows, doors, insulation, air sealing, HVAC systems, etc. No income limits are specified. More Info IRS Info

Rebates

High-Efficiency Electric Home Rebate (HEEHRA):

  • For low-income households (<80% area median income), 100% rebate up to $14,000 total for electrification projects like heat pumps, electric appliances, and panel/wiring upgrades. More Info IRA Rebates InfoHow to Qualify Bill Info
  • For moderate-income households (80-150% area median income), a 50% rebate of up to $14,000 total for the same electrification projects. More Info Bill Info How to Qualify Bill Info

Home Owner Managing Energy Savings (HOMES) Rebate:

  • For retrofits with 35%+ modeled energy savings, the rebate is the lesser of $4,000 or 50% of costs. Incentives Info Tax Credits Info
  • For 20-34% modeled savings, the rebate is lesser of $2,000 or 50% of costs. Incentives Info Tax Credits Info
  • For 15%+ measured savings, the rebate is lesser of $1,000 or 50% of costs.
  • For low-income households (<80% area median income), rebates are doubled or up to 80% of project costs.
  • No income limits are mentioned for standard HOMES rebates.
The rebate programs will be administered by state energy offices, so homeowners should check their state's specific program guidelines and application processes once available.

Michigan-Specific Information

Michigan Earned Income Tax Credit (EITC)

Michigan Homestead Property Tax Credit

  • Provides a credit of up to $1,700 for the 2024 tax year to help cover property taxes. Michigan Free Tax Help TaxSlayer Credit Info
  • Available to Michigan homeowners with a taxable home value of $154,000 or less.
  • Available to Michigan renters and homeowners with total household resources under $67,300.

Michigan Home Heating Credit

  • Total household income limits range from $16,043 for a single person to $44,329 for a 6-person household. Michigan Free Tax Help
  • Must own or rent and have the heating bill in your name. 
To receive the rebate checks for the expanded 2022 EITC, eligible taxpayers do not need to take any action if they filed a 2022 Michigan tax return. The Department of Treasury will automatically process the payments starting in February 2024. Michigan EITC Details Tax Refund Checks For other state credits like the Homestead Property Tax Credit, taxpayers must file a 2023 Michigan tax return to claim them.

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