The Inflation Reduction Act and You: Cutting Carbon and Costs!
At GMP we partner with customers to cut carbon and costs and deliver innovations that increase resiliency. From electric vehicles and battery storage to heat pumps and custom solutions for businesses, we can help you save while reducing the top two sources of carbon emissions in Vermont – driving and heating. Today, GMP’s power supply is 100% carbon free and will be 100% renewable by 2030. So, making the switch from fossil fuel to clean electrification really adds up, plus it helps lower costs for all customers.
You may have heard about the Inflation Reduction Act (IRA) and be wondering how this new legislation can benefit you. The IRA includes lots of reasons to get excited because it will greatly expand on the programs and rebates that exist, creating more savings and opportunities for you.
Here’s a breakdown of what we know, plus many of these are in addition to all the rebates GMP offers, so these savings can really add up!
- Expanded rebates will be available for super-efficient heat pumps in late 2023. targeting low- and moderate-income households. These rebates are not yet in effect, but when they are, households making up to 150% of the area median income will see rebates up to:
- $1,750 for heat pump water heater
- $8,000 for a heat pump for space heating or cooling
- Tax credits will be available for the purchase of certain heat pump installations for purchases made between Jan. 1, 2023 and Dec. 31, 2032. Certain types of improvements will be eligible for up to $2,000 a year or 30% of total cost of improvements at tax time.
- The manufacturer’s cap is no longer in effect. This means certain types of popular EVs will once again be eligible for tax credits beginning in 2023!
- Building on Vermont’s successful rollout of electric vehicle incentives, the IRA creates an incentive of up to $7,500 for new EVs and up to $4,000 for used EVs. The tax credit for a new electric vehicle requires manufacturing and final assembly completed in North America.
- These tax credits have certain income eligibility requirements, as seen here.
- The used EV must come from a licensed dealership and have a value of less than $25,000 to receive the credit.
- Used EVs are also only eligible for this credit the first time it is resold.
- The credit is either $4,000 or 30% of the sticker price, whichever is lower.
- And we’re excited to share that beginning in 2024 some of the credit can be applied directly to the car dealer, which means a reduction in the price you pay at the time of purchase!
Going Electric at Your Home
- Rebates will be available for certain new electric appliances including water heaters, clothes dryers, stoves, and ovens. Households making up to 150% of the area median income will see rebates up to:
- $840 for an electric stove, cooktop, range, or oven; or electric heat pump clothes dryer
- $4,000 for breaker box upgrade
- $1,600 for insulation, air sealing, and ventilation
- $2,500 for electric wiring
- Tax credit for homeowners making energy efficient improvements re-established through 2032. Certain types of improvements will be eligible for up to $1,200 a year or 30% of total cost of improvements at tax time.
- Tax credits covering 30% of the costs to install battery storage systems. These credits are retroactive to the beginning of 2022, so be sure to check out our BYOD program to get a battery installed in your home!
Keep an eye out from GMP for more info soon on lots of these programs. And please reach out with any questions about what these exciting opportunities mean for you! We are here to help you cut carbon and costs, which now has gotten even easier!