What Maryland Homeowners Should Know About the Inflation Reduction Act

The Inflation Reduction Act, aka the IRA, is a federal law that was passed in 2022. With $370 billion for programs specifically focused on improving the environment, homeowners can save significantly on air sealing, insulation, and other clean energy upgrades through IRA tax credits and rebates. 

Today, we’re digging into what Maryland homeowners need to know about the IRA: what it is, the clean energy rebates and tax credits it contains, and how the local experts at Total Home Performance can help homeowners on the Eastern Shore take advantage to improve their home’s energy efficiency and comfort. 

Inflation Reduction Act Rebates and Tax Credits 

The IRA incentivizes businesses and homeowners to make clean energy upgrades by offering tax credits and rebates to offset the costs associated with these upgrades. It created two new rebate programs (called HOMES and HEEHR), and individual states will be responsible for setting up those programs. We’re likely to know more this summer about when they'll be available in Maryland and we will keep you updated as we learn more! 

But right now, homeowners can save on energy-efficient upgrades through the Energy Efficiency Home Improvement Tax Credit. Formally known as the 25C credit, the IRA revived and upgraded this tax credit—it’s now equal to 30% of the cost of a variety of energy-saving home upgrades. Additionally, the tax credit’s original lifetime cap of $500 has been replaced by a $1,200 annual limit on specific services and upgrades (more on this shortly!). 

Eligible Services for the IRA Tax Credit 

For Maryland homeowners looking to improve their home’s energy efficiency, many home performance upgrades qualify under the Energy Efficiency Home Improvement Credit. Remember that $1,200 annual limit we mentioned earlier? Here’s how it applies to eligible services and upgrades: 

• Insulation, air sealing, and crawl space encapsulation: $1,200 annual max, materials only

• Home energy audits: $150 max 

Save More with Tax Credits + Up to $7,500 in Rebates!

Since 2009, the local experts at Total Home Performance in Easton, Maryland, have been helping homeowners on the Eastern Shore make their homes comfortable, healthy, and energy-efficient through home performance upgrades. Thanks to a combination of the IRA and existing local rebates, the time has never been better to save on energy-efficient upgrades like air sealing, insulation, and basement encapsulation. 

In addition to savings through the IRA, our customers can save significantly through rebates currently available through the Home Performance with ENERGY STAR program (HPwES). As one of the only participating contractors for this program on the Eastern Shore, our customers can save up to $7,500 in rebates for many energy-efficient home upgrades–especially crawl space encapsulation. 

As homeowners can combine the IRA tax credits and rebate savings through the HPwES program, right now is a great time to schedule home performance upgrades to your Maryland home. 

Take advantage of the Inflation Reduction Act’s savings and improve your home’s comfort and efficiency today. Call Total Home Performance at 410-220-2647 or contact us online.