The Inflation Reduction Act passed in 2022 by the federal government brought about a number of changes to our national tax laws and opened up funding for clean, energy efficient technologies. The Inflation Reduction Act added or expanded upon many federal credits, rebates, and other incentives for the purchase of more energy efficient systems. While we won’t dive headlong into the 755-page document, many of these changes can benefit everyone looking to make the transition to clean energy technologies.
A credit? A rebate? A discount?
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There’s a lot of jargon used to describe the ways in which the Inflation Reduction Act reduces cost for the purchase or installation of energy efficient technologies. Here are a few incentive examples:
Tax credit: Tax credits reduce the liability of taxpayers, essentially reducing the amount you owe in taxes. Through the Inflation Reduction Act, tax credits are available for the installation of heat pumps and hot water heaters, as well as energy efficiency upgrades of doors, windows, and electrical panels. Starting in 2024, electric vehicles will carry up to a $7,500 tax credit that will be transferable to dealerships, effectively converting them to an upfront discount for purchasers.
Rebate: A rebate is a portion of a payment made that is refunded to a purchaser. At present, federal rebates are available on the purchase of electric/ induction cookstoves, heat pump clothes dryers and air conditioners. Visit www.rewiringamerica.org/app/ira-calculator for more information.
Discount: Discounts are an immediate reduction at the point-of-sale on an item or service. An example includes Efficiency Maine’s discount of $850 off of the installation of a new heat pump hot water for Maine residents. Check out more information on this program a twww.efficiencymaine.com/at-home/heat-pump-water-heater-program/.
Maine incentives
In addition to federal incentives made available through the Inflation Reduction Act, the Efficiency Maine Trust is the state’s administrator for programs to improve energy efficiency and lower greenhouse gas emissions. Efficiency Maine programs offer incentives in the form of tax credits, rebates, and discounts, as well as low-interest energy efficiency loans for homeowners, businesses, and other entities across the state.
For more information about Efficiency Maine, visit: www.efficiencymaine.com/.
While South Portland’s Electrify Everything! program has closed, the beneficial electrification rebate program provided more than $260,000 to 300-plus households across the city, making South Portland more energy efficient, sustainable, and resilient to climate change. Rest assured that the South Portland Sustainability Department is keeping its eyes and ears open for any opportunities forthcoming that would allow for new rebates for city residents in the future.
Coffee & Climate: Navigating State and Federal Incentives
Join us Friday, Sept. 8 from 9 to10 a.m. for this month’s Coffee & Climate: Navigating State & Federal Incentives.
Dan Burgess, director of the Maine Governor’s Energy Office, and Hogan Dwyer, of Efficiency Maine, will join us to discuss the opportunities available to help Mainers transition to renewable and energy-efficient technology. Listen in to learn how you can decrease your reliance on fossil fuels and save money while doing it.
Grab a cup of coffee and join us online to discover just how much money you can save with the Inflation Reduction Act.
Sign up for the Zoom get-together at https://portlandmaine-gov.zoom.us/meeting/register/tZIocu2hqj8vGNaD2NWj35piKvt2ycIRbln_.
A recording of the discussion will also be available shortly following its conclusion at www.oneclimatefuture.org.
Our Sustainable City is a recurring column in the Sentry intended to provide residents with news and information about sustainability initiatives in South Portland. Follow the Sustainability Office on Instagram @soposustainability.
Steve Genovese is an AmeriCorps/Greater Portland Council of Governments Resilience Corps fellow serving in the South Portland Sustainability Office through September 2023. He can be reached at sgenovese@southportland.org.
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