What the Inflation Reduction Act Could Mean for Your Next Appliance Purchase
You might be eligible for a rebate when you buy an electric range, a cooktop, or a wall oven
The Inflation Reduction Act could help save you money if you’re replacing a kitchen appliance.
The landmark program, which runs through 2032, includes rebates and tax credits for bigger purchases, such as energy-efficient heat pumps and electric vehicles. But one lesser-known provision allocates funding for states to provide rebates for the purchase of new electric appliances, including cooktops, ranges (aka stoves), and wall ovens.
That’s great news for anyone thinking about making the switch from gas to electric cooking. “There’s this big misconception that electric ranges don’t cook as well as gas,” says Shanika Whitehurst, CR’s associate director of product sustainability on the research and testing team. “But the technology has improved to the point where electric and especially induction ranges and cooktops cook every bit as well, if not better than gas.” For more on electric ranges, check out the surprising things a CR reporter learned when he switched from a gas stove to an induction range.
How You Can Take Advantage of the Inflation Reduction Act
CR explains how buying a heat pump for your home could get you thousands of dollars in federal tax credits and state rebates. We also fill you in on which cars will qualify for the new electric vehicle tax credit. You can even get a tax credit on a used EV.
Will You Qualify for a Rebate If You Buy a New Electric Appliance?
It depends on how much you earn and where you live. Your individual state will set the exact framework, but the guidelines in the legislation call for the rebate amount to be dependent on how your household income compares with the median household income (HHI) of a particular area to be determined by the state. For instance, it may pertain to your ZIP code, county, or the entire state. If you earn:
- Up to 80 percent of the median HHI in your area, you get up to 100 percent of the cost of the new appliance (or up to $840, whichever is less).
- More than 80 percent but less than 150 percent of the HHI in your area, you get 50 percent of the cost of the new appliance.
- Above 150 percent of the median HHI in your area, you do not qualify for a rebate.
To learn more, look for local information from your state’s energy office at the National Association of State Energy Officials.
What If You're Replacing an Electric Appliance With a New One?
As written, the legislation does not disqualify you from receiving the rebate if you’re replacing an old electric appliance with a new model. But the answer depends on where you live. “With limited funds to go around, there could be differences from state to state,” says the NRDC’s Nielson.
If a state anticipates a lot of interest in the program, it could, along with DOE guidance, limit the credits only to gas-to-electric appliance replacements to maximize environmental benefits before the funding runs out. Or, a state could open the program to cover those replacing an existing electric appliance, but with reduced benefits.
Does an Induction Appliance Qualify, Too?
Yes, induction ranges and cooktops run on electricity, so they count. Better still, induction ranges and cooktops are also the most energy-efficient option you can buy, according to the NRDC, so while there’s no additional rebate for opting for induction, you may see some modest extra savings on your electric bill, beyond what you’d save with an energy-efficient electric smoothtop range. As a group, many are among the best induction ranges tested by Consumer Reports.
How to Apply for an Inflation Reduction Act Rebate
Once the DOE allocates funding to individual states, those states will still need time to set up these programs. Once they’re up and running, the DOE suggests visiting the Database of State Incentives for Renewables and Efficiency (DSIRE), which tracks rebates, tax incentives, and credits related to energy efficiency in all 50 states. Click on your state to check whether they’ve rolled out the program locally, and follow the steps listed.
Save any paperwork related to the purchase and installation of your qualifying appliance. Follow your state’s specific steps, including filing any rebate applications. You’ll likely receive the rebate at the point of sale or in the form of a check or direct deposit. But keep in mind your state will set specific parameters. If you upgrade your home’s electrical panel to accommodate an electric cooking appliance, you’ll likely receive that money back in the form of a tax credit when you file your state and federal income taxes next year.
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