Inflation Reduction Act Information for Maryland Residents
From the White House Website
Insulation and Air Sealing
The Inflation Reduction Act provides tax credits and rebates for a range of home improvements that reduce energy leakage – keeping homes warmer in the winter, cooler in the summer, and saving money on utility bills. Insulation material can lower heating and cooling costs by up to 20%, and air sealing (like caulking and weather-stripping) save energy and improve air quality by keeping moisture out. In addition to supporting the upgrades themselves, the Inflation Reduction Act can also cover the costs of home energy audits so that an inspector can identify the best improvement options.
Understanding the New Bill
The Inflation Reduction Act includes several incentivized programs to promote energy efficiency and combat climate change.
Check out a state by state breakdown of funding for the incentives here.
There are two big pushes to watch out for...
Electrification - Carbon Footprint - the process of strategically (end of life machines) replacing combustion furnaces/cars with all electric versions that use clean energy.
A big part of the bill gives rebates to homeowners who make recommended energy-efficient upgrades to their homes.
It will start with Energy Audit Inspections that may lead to Home Performance retrofitting for measured (modeled) results.
How to Take Advantage of the New Bill
First, a few Key Unknown Answers
Example of a modeled house through the existing Maryland Home Performance with ENERGY STAR® Program
Home Performance/ Insulation Rebates
$4.3 Billion for HOMES (Home Owner Managing Energy Savings) Rebate Program
WATCH: Check out a HOME PERFORMANCE job and the measured results.
Whole house solutions look to seal your house so your HVAC works less - saving you energy.
This provision of the bill incorporated elements of legislation that Maryland lawmakers voted for called “HOPE for HOMES.”
U.S. Sen. Chris Van Hollen said there are “tremendous savings” in using energy more efficiently.
He pointed to the biggest hold up to a homeowner making improvements in their home to lower energy usage is the up-front cost.
Sometimes the up-front costs overshadow the savings gained over time and the 2022 bill makes getting the work done more attractive and affordable.
Under the Inflation Reduction Act, many homeowners will be eligible to recoup up to 50% of energy improvement costs — up to a maximum rebate of $4,000. Lower-income homeowners could be eligible for more generous rebates of up to 80% of costs, a maximum of $8,000.
Rebates & Training Grants
Maryland residents can expect two major rebate program roll outs, better tax incentives and training dollars for local contractors to learn the key principles in order to keep up with demand.
ADDITIONAL PROGRAMS FOR MARYLAND HOMEOWNERS
$4.5 Billion for High-Efficiency Electric Home Rebate Program
More immediately, the new bill makes changes to tax credits for energy efficiency upgrades.
25C Tax Credit - Energy Efficiency Home Improvements (The Nonbusiness Energy Property Tax Credit)
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Home performance work makes the difference in energy savings and better home comfort.
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