IRA Section 50122 – High-Efficiency Electric Home Rebate Program for Low to Moderate Income Households

Section 50122 of the IRA appropriates $4.275 billion to DOE to award grants to State energy offices to develop and implement high-efficiency electric home rebate programs. Section 50122 also appropriates an additional $225 million to DOE to award grants to Indian tribes to develop and implement a high-efficiency electric home rebate program. High efficiency electric home rebate programs must provide rebates to eligible entities for qualified electrification projects, including appliance upgrades (e.g., for the installation of heat pump water heaters, heat pumps for space heating or cooling, electric stoves and ovens, electric heat pump clothes dryers) and non-appliance upgrades (e.g., for insulation and ventilation and electric wiring upgrades).

This section caps the maximum amount of rebates that may be provided under high-efficiency electric home rebate programs (with different caps for different types of projects). Rebates may not be combined with any other Federal grant or rebate for the same qualified electrification project. Rebates can only be provided to an “eligible entity,” defined as “a low-or moderate income household,” “an individual or entity that owns a multifamily building” in which at least 50% of the residents are low- or moderate-income households, and “a governmental commercial or nonprofit entity . . . carrying out a qualified electrification project on behalf of” such household, individual, or entity. A “low or moderate-income household” is defined as an individual or family with a total annual income less than 150 percent of the median income of the area in which the family resides.

The Secretary of Energy must adopt guidelines for high-efficiency electric home rebate programs, including guidelines for providing point of sale rebates in a manner consistent with the income eligibility requirements established in section 50122 of the IRA.

DOE must not use more than 3% of the funds appropriated under section 50122 of the IRA for administrative expenses and for providing technical assistance relating to activities under the section. A state energy office or Indian tribe receiving funds under the section may not use more than 20% of funds received for planning, administration, or technical assistance activities.

The funds appropriated under section 50122 shall remain available until September 30, 2031.