Do You Know About the Inflation Reduction Act Savings?  

In late summer 2022, the Inflation Reduction Act (IRA) was signed into law as part of an effort to stimulate the growth of clean energy. It also aims to help with climate change and offers financial relief to homeowners and communities. Considered the country’s biggest economic investment in many years, it has sparked many initiatives that help homeowners and renters take advantage of energy upgrades at reduced costs. 

The act paved the way for individuals and companies to make investments in everything from agriculture and manufacturing to transportation and clean energy. The goal is to help the country reduce greenhouse gas emissions and transition to a “green economy.” In the end, these transitions will benefit the environment and save households an average of $1,000 in energy costs every year.  

With tax credits and programs offered in conjunction with state incentives, millions of New Yorkers qualify for homeowner benefits designed to help them become more energy efficient. 

NY State Energy Upgrades 

You can combine savings from the Inflation Reduction Act with incentives offered by New York State to maximize cost efficiencies. The IRA itself is a nearly $400 billion prospect, with approximately $8.8 billion earmarked for home energy rebates. Added to New York’s robust programs, including EmPower New York and NYS Clean Heat, the IRA helps homeowners tackle major energy upgrades with minimal costs.  

New York State was awarded $160,915,850 in home energy rebates alone. In addition to other savings, incentives, and rebates, New Yorkers could qualify for rebates from the Home Electrification Appliance Rebate (HEAR), which provides extra savings for various projects, including: 

• Air sealing, ventilation, and insulation: $1,600 
• Heat pumps: $8,000 
• Heat pump water heaters: $1,750 
• Upgrading electrical wiring: $2,500 
• Upgrading panel boxes and electrical service: $4,000 

And the savings don’t stop there. Once the work is completed, homeowners will continue saving every month from improved efficiency that reduces energy use and costs.  

Home and Commercial Tax Credits 

Eligibility for tax credits through the IRA and New York State Energy Research and Development Authority (NYSERDA) programs vary. Factors like household size and income, federal tax liabilities, and product specifications can impact the amount received.  

IRA federal tax credits for geothermal heat pumps, for example, cover 30% of the cost with up to $5,000 in tax credits from New York State. Air source heat pumps are eligible for 30% tax credits up to $2,000 annually, with NYS incentives that could provide an additional $100 to $3,000 in assistance.  

Other notable home and commercial tax credits include: 

Energy Upgrade	IRA Tax Credit	NYS Tax Credit/Incentives
Heating and Cooling Equipment	30% of costs up to $600 with a cap of $1,200 annually	NYS Incentives average $700 to $1,000
Heat Pump Water Heaters	30% of cost up to $2,000 annually
Upgraded Exterior Doors	30% of cost up to $500
Efficient Windows	30% of costs up to $600 annually
Insulation	30% of costs subject to a $1,200 cap annually	Incentives averaging $1,000 to $4,000

New York State leads the nation in its efforts to combat climate change and increase accessibility to energy-efficient upgrades. Programs work in tandem with the IRA tax credits to maximize your savings and make it possible to make the changes you need to save the most energy and money. 

Air Sealing 

Air sealing is a critical step in achieving energy efficiency in homes and other buildings. You could save an average of more than 10% on energy costs with air sealing and insulation upgrades, according to the Environmental Protection Agency (EPA).  

As another NYS program made possible by the IRA, the Comfort Home program makes air sealing and insulation upgrades affordable. Packages provide rebates and other incentives to offset the costs of upgrading insulation in the walls, ceilings, and floors. It also includes benefits for sealing air leaks, installing high-efficiency windows, and more. The Comfort Home program has packages with incentives ranging from $1,000 to $4,000, depending on the scope of the work. 

EmPower New York 

EmPower+ has been one of the flagship offerings from NYSERDA, and it’s even stronger with the IRA. This income-driven program for homeowners and landlords helps lower upfront costs for energy upgrades. Thousands of New Yorkers have already qualified for free upgrades, and many others have received low-cost energy efficiency improvements. 

Home and Commercial Energy Audit 

It’s difficult to lower home energy costs or improve the energy efficiency of commercial buildings without understanding their current energy use. The IRA provides incentives of 30% of the cost of home energy audits up to $150. However, New York State has made this valuable service free for all New Yorkers. Highly trained technicians provide a through visual inspection inside and out, along with specialized testing to identify areas in need of improvements, test for air leaks, evaluate HVAC equipment, insulation, and water heaters, and pinpoint potential safety hazards. 

Get Free Energy Upgrades 

Standard is here to help every residential and commercial client understand their options and get the commercial or home energy efficiency upgrades they need. By taking advantage of the Inflation Reduction Act savings and various NYSERDA program offerings, you could qualify for completely free upgrades.  

It all begins with an energy audit. Contact us today to schedule an in-home evaluation to get started.