Everything We Know About the Inflation Reduction Act for Wisconsin Homeowners

Everything We Know About the Inflation Reduction Act for Wisconsin Homeowners  blog header image
February 13, 2023

The Inflation Reduction Act of 2022 (IRA) includes some excellent incentive programs that make home efficiency upgrades like attic insulation and air sealing more affordable. Wisconsin Home Improvement is staying on top of everything the state of Wisconsin will be getting from this new legislation and how to qualify so we can help you save as much money as possible. We meet all program requirements and are the go-to insulation and energy efficiency contractor for energy rebates in the Milwaukee, Wisconsin area. 

The 30% Energy Efficiency Home Improvement Tax Credit 

The Inflation Reduction Act updated the Nonbusiness Energy Property tax credit and gave it a new name: The Energy Efficiency Home Improvement tax credit. 

What Is the Energy Tax Credit for 2023? 

The new IRA energy efficiency tax credit is worth 30% of your project costs for qualifying energy efficiency upgrades in 2023. Here are some of the bigger takeaways (reach out to us for all of the details!): 

  • Insulation and air sealing (material costs only, $1,200 annual limit)

  • Home energy audits ($150 annual limit) 

  • Heat pump and mini split installation ($2,000 annual limit) 

  • Energy efficient furnace, boiler, and AC installation ($600 annual limit) 

  • Electrical panel upgrades ($600 annual limit)

How Do You Qualify for the IRA Energy Efficiency Credit? 

It’s easy to qualify for the IRA energy efficiency credit. All you have to do is complete a qualifying energy efficiency home improvement project and claim the credit on your annual tax return. The 30% tax credit is live as of January 1, 2023, so all new projects will count!

You’re allowed to claim the IRA tax credit multiple years in a row, from now until it expires in 2032. We can help you prioritize and schedule your projects over several years using Pearl’s Green Door App. Scheduling out your projects will help you maximize your tax savings and allow you to make upgrades at your own pace. 

Inflation Reduction Act Rebate Programs 

The infrastructure bill of 2022 created two new rebate programs that can help you save on energy upgrades like insulation, air sealing, heat pumps, and more. 

HOMES Act Rebates 

HOMES is a new state rebate program that will be managed by the Wisconsin Department of Energy. It offers performance-based rebates, which means the rebate amount you qualify for depends on the energy savings your project will achieve. 

  • Rebate up to $2,000 for homes with modeled energy savings of 20-35%

  • Rebate up to $4,000 for homes with modeled energy savings greater than 35% 

HOMES rebates cannot be combined with other federal grants or rebate programs, but they can be combined with the IRA energy efficiency tax credit.  

High-Efficiency Electric Homes Rebate Program 

The High-Efficiency Electric Homes rebate program will also be managed by the Wisconsin Department of Energy. It offers rebates for a variety of electrification and home performance upgrades, with a maximum rebate amount of $14,000. The program includes a rebate worth up to $1,600 for insulation, air sealing, and ventilation upgrades. 

Like the HOMES rebates, the High-Efficiency Electric Homes rebates cannot be combined with any other federal rebate programs, but they can be used in tandem with the IRA tax credit. 

How Do You Qualify for Inflation Reduction Act Rebates?  

To qualify for HOMES rebates, you must be able to prove that your upgrades will result in a certain percentage of energy savings. This is done with energy modeling, which Wisconsin Home Improvement can help you with through the Green Door app! 

To be eligible for High-Efficiency Electric Homes rebates, you must meet the program’s income requirements:

  • Households with an annual income below 80% of the area’s median household income are eligible for 100% off the cost of their project, up to the maximum rebate amount. 

  • Households with an annual income of 80-150% of the area’s median household income are eligible for 50% off the cost of their project, up to the maximum rebate amount. 

Wisconsin Home Improvement can help you determine whether you qualify for Inflation Reduction Act rebates—call us today! 

Take Advantage of Wisconsin Energy Rebates & Incentives 

With so many excellent rebates and tax incentives available now or coming soon, now is the perfect time to upgrade your home. Wisconsin Home Improvement is here to help you maximize your savings with IRA tax credits and incentive programs. We are staying up to date on all new information about rebate programs so we can make sure you don’t leave a penny on the table during your home improvement project once they’re available. We also offer excellent financing for home improvement projects and can help you qualify for additional incentives, like the Focus on Energy program. 

Save on energy efficiency home improvements with IRA tax credits and rebates. Call 262.345.9922 or contact us to get started.

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