Americans may receive up to $8,000 as a one-time rebate for replacing appliances in their homes, as part of a $150 million federal infrastructure rebate from the Biden administration, as reported by The US Sun on January 16, 2023.
The purpose of the funding is to assist Americans in upgrading to more energy-efficient appliances by replacing their older ones, through the Inflation Reduction Act, which aims to lower energy expenses by offering credits for the purchase of new products on an annual basis.
Replacing a furnace can be costly, with prices ranging from $5,000 to $20,000. However, under the Inflation Reduction Act, those who choose to replace their furnace with a heat pump may be eligible for a rebate.
Households can receive up to $4,000 in credits for making energy-efficient upgrades, while multifamily buildings may qualify for up to $400,000. To claim these credits, individuals must fill out Form 5695. However, there may be high initial expenses associated with purchasing the new energy-efficient appliances.
To qualify for the additional payment, income must be within 80-150% or below median income. If cost of electrifying is 80-150% of average, rebate covers 50% of expense. If cost is below average, rebate fully covers expense, capped at $14,000 per household.
The full rundown of the incentives includes $8,000 for heat pumps, $4,000 for panel/service upgrades and $1,750 for heat pump water heaters.
Reduce energy use by 20% for $2,000 or 35% for $4,000. Rebates cover heat pumps, panel upgrades, and heat pump water heaters, as well as electric stoves, clothes dryers, and insulation.