The Inflation Reduction Act (IRA) bill of 2022 is a groundbreaking law that makes energy efficiency upgrades more affordable for homeowners throughout the country. As the largest act of congress to fight against climate change, the IRA incentivizes clean energy through several tax credits and rebates. Here’s what these incentives mean for Denver homeowners and how e3 Power can help you maximize your savings.
WHAT’S INCLUDED IN THE INFLATION REDUCTION ACT
The IRA motivates homeowners to transition away from fossil fuels through electrification and emphasizes the importance of insulation and other weatherization services as whole home solutions to comfort and health issues. Here are the details on these incentives:
IRA TAX CREDITS
The Energy Efficient Home Improvement Tax Credit allows homeowners to save up to 30% on qualifying home improvements. Also known as 25C, this IRA tax credit is available now through 2032 and can be filed with your annual tax returns, up to $3,200 every year. Homeowners can use the 25C federal tax credits for services like:
- Energy audits ($150 max)
- Insulation (materials only, $1,200 annual limit)
- Heat pump installation ($2,000 annual limit)
- And more!
The Inflation Reduction Act also includes two rebate programs to offer further savings on energy efficiency. They are not currently available, however Colorado will apply for the funding for both IRA rebates. These programs will offer homeowners up to $4,000 for home performance upgrades, with even more available to low to moderate-income households. At e3 Power, we’re keeping a close watch when these incentives will be available to Denver homeowners and will provide updates once we have more details on how to qualify for the Inflation Reduction Act rebates.
HOME PERFORMANCE STARTS WITH AN ENERGY AUDIT
Before you start with any energy efficiency upgrades, it’s important to understand where your home has inefficiencies. A whole house energy audit is a comprehensive analysis of your home and its performance. This allows you to know exactly what upgrades will be the most effective—and which ones you don’t need.
At e3 Power, we have seen many homeowners waste valuable time and money on complicated services that could have been avoided with a proper energy audit. There are many contractors out there offering energy audits in addition to home improvement services — and these audits usually end up leading to the other services they offer. As a homeowner, you can trust our unbiased recommendations because we exclusively perform energy efficiency audits that are based on building science instead of the possibility of booking a future job.
WHAT’S INCLUDED IN AN E3 POWER ENERGY AUDIT
- Your home’s building envelope, including windows, doors, and exterior walls, for any air leaks and insufficient insulation.
- Any combustion equipment you have, like a furnace or water heater, for leaks, and damage.
- The movement of air within your home for any indoor air quality issues.
We also offer drone-based thermal inspections of Denver homes as a faster, safer, and more efficient option for inspections.
DON’T WAIT FOR ENERGY EFFICIENCY
Even though the IRA rebates are not available yet, there are still a great deal of rebates and incentives available to Colorado homeowners, including a new state tax credit. Get started making an energy efficient home with an energy audit so you can enjoy the many benefits they provide, like:
- Better indoor air quality
- Increased home comfort
- Lower heating and cooling costs