In an article about the IRA’s home efficiency rebates, Banker & Tradesman — a leading publication covering the real estate and investment industries — referenced findings from our Residential Capital Stack policy briefing.
This article by Lew Sichelman originally appeared in Banker & Tradesman on Sept 3, 2023:
Homeowners, which of these consumes more energy in your house: space heating or water heating? Either way, Uncle Sam is ready to help you pay for some energy-efficient upgrades.
The Inflation Reduction Act, signed into law by President Joe Biden a year ago, created two energy-efficiency rebate programs that could pay some, or even all, of the costs of buying Energy Star-rated appliances, adding insulation or otherwise making your home more efficient.
The rub: States will administer the programs, and each one must apply for its share of the $8.8 billion in federal funds earmarked for the rebates. And some states may opt out.
The states’ application window opened this summer, when the Department of Energy issued the program’s guidelines, and will close on Jan. 31, 2025. DoE expects the majority of states will have their programs up and running by early 2024. The rebates will be available to homeowners until Sept. 30, 2031, or until their respective state depletes its grants.
Declined funds will be redistributed to other states.