The recently passed Inflation Reduction Act (IRA) addresses many issues, including taxes, healthcare, and climate initiatives. It offers up to $14,000 in tax credits and rebates to homeowners who help combat climate change by making their properties more energy-efficient via improvements to plumbing, heating, cooling, and electrical upgrades.
Minneapolis and Twin Cities homeowners who invest in the improvements over the next 10 years could save thousands of dollars on purchasing certain appliances and energy bills.
What Are Home Energy Rebates in Minnesota?
Individuals living in Minnesota will be able to access credit for:
- Water heaters: $600 for electric or gas heat pump water heaters or heat pumps, central air, gas or propane water heater, hot water boiler, or biomass boiler
- HVAC: $2,000 toward a heat pump
- Windows and doors: $600 for windows and $250 per door, up to $500
- Insulation and weatherization: $1200
- Home energy audits: $150
How Will This Affect Me?
The savings provided by the IRA will reach communities across Minnesota, including in Minneapolis, the Twin Cities, and the surrounding areas. Families can see their expenses lowered through:
- Reduced energy costs and rebates covering 50 to 100% of the cost to purchase and install energy-efficient appliances, including heat pumps, water heaters, clothes dryers, and more
- Rebates for homeowners who make repairs and improvements in single and multi-family residences to increase energy efficiency
- Tax credits for 30% of the costs related to installing solar panels and battery storage systems
- Tax credits of 30% for home improvements that reduce energy leakage
- Tax credits of 30% for upgrades to heating and cooling equipment
The Act also provides tax credits for community solar projects and other clean energy and electrification improvements at affordable housing units.
What Are the Available Rebates for HVAC Upgrades in Minnesota?
Minnesota currently offers rebate programs for the following HVAC-related investments:
- Air sealing and insulation
- Duct sealing
- Heating systems, including high-efficiency natural gas heating
- Heating system tune-ups
- Energy-efficient gas hearths and fireplaces
- Programmable, Wi-Fi enabled, or smart thermostats
The state also offers rebates for in-home energy-saving audits and energy-efficient equipment installed in newly constructed homes.
What Changes Can I Make To Get the Rebate?
There’s never been a better time for Minnesota homeowners to invest in energy-efficient plumbing, heating, cooling, and electrical improvements to their homes. In addition to the items listed above, upgrades the IRA covers include:
- Installing ENERGY STAR® windows, doors, and skylights
- Purchasing and installing highest efficiency tier central air conditioners and other qualified electric, gas, and propane HVAC systems
- Electrical upgrades that promote energy efficiency, including panel upgrades
Unsure where to begin? Ask your power company or a professional heating, cooling, and electrical company about performing a home energy audit to learn how to save money through improvements and upgrades.
Moving Toward Greater Energy Efficiency With 4Front Energy
The Inflation Reduction Act is the country’s most significant clean energy investment ever made. Its substantial incentives are designed to make the transition to clean energy and a decarbonized life easy and financially beneficial for all Minnesota homeowners, including those in Minneapolis, the Twin Cities, and the surrounding areas.
One final note: while some incentives are available for DIYers, others require working with a professional installer. Backed by nearly 30 years of service, 4Front Energy delivers high-quality HVAC, plumbing, and electrical services that ensure lasting home comfort.
Contact us online or call us at (952) 933-1868 to learn more about the IRA or schedule services.
