Inflation Reduction Act: What Benefits Are Available?
Updated: Oct 9
As we enter the fourth quarter of 2023, American utility costs are on the rise, and experts anticipate this trend will continue. Thanks to factors like inflation, fuel prices, and newly passed legislature, consumers are forced to bear the burden of expensive commodities. In response to utility prices, the Biden administration has enacted the Inflation Reduction Act (IRA) to lower energy costs for consumers and create jobs in the clean energy and manufacturing sectors.
Insulation and Air Sealing
The IRA provides tax credits and rebates for a variety of home improvements that minimize energy leakage. You could receive support for insulation materials, which can reduce your heating and cooling costs by up to 20%. In addition to upgrades, the IRA may cover the cost of home energy audits. Audits enable an inspector to identify the best options for increasing your home's energy efficiency.
Reduced Drug Prices
If you are a Medicare recipient, the IRA could help you obtain prescription medicines at a subsidized cost. The bill includes a provision that requires drug companies to pay a rebate to Medicare if they raise a cost of a drug above than the inflation rate. This stipulation aims to discourage organizations from hiking up their prices to unreasonable rates. Depending on your prescriptions, your out-of-pocket medication costs may be reduced. Need extra cash for bills? This site pays up to $25 per survey
Solar power is great for the environment as well as your wallet. Families who install solar panels will save an average of $9000 throughout their solar system's lifetime. The IRA is offering tax credits to cover up to 30% of installation costs. This federal incentive can be paired with additional incentives available in many states.
Electric heat pump clothes dryers are more efficient than conventional electric driers and gas driers. The Inflation Reduction Act provides rebates that cover up to 100% of the costs of purchasing and installing a new electric heat pump clothes dryer, depending on household eligibility. The IRA also offers rebates for up to 100% of the cost of purchasing and installing electric stoves, cooktops, ranges and ovens. Swapping out your gas appliances can provide massive energy savings.
In order to help Americans eliminate gas expenditure, the Inflation Reduction Act is offering tax credits of up to $7500 for the purchase of new electric vehicles, and $4000 for used electric vehicles.
Households with annual income below 80% of an area’s median income can receive rebates of up to 100% of a project’s cost. Households with an annual income between 80% and 150% of an area’s median income can receive rebates up to 50% of project cost.