The Inflation Reduction Act was passed in August 2022, and besides reducing the deficit and lowering prescription drug prices, it provides incentives for clean energy. And if you’ve been thinking about buying a new electric stove, you’re gonna want to pay attention … there could be potential rebates coming your way.
The provisions in this bill might make it possible for you to get at least 50% off the cost of a new electric stove — and in some cases, you could possibly get one entirely free. At the same time, the government is kicking around the idea of ending sales of new gas stoves, so the timing is pretty ideal.
Here’s what’s happening with the electric stove rebates and how much you could save.
Most people will get up to $840 off the purchase of a new electric stove.
The Inflation Reduction Act offers rebates on a number of cleaner-energy products, including electric stoves.
You can get up to $840 in rebates for your electric stove purchase — but how much you get depends on the price of the stove, your annual income, and how it compares to the Area Median Income (AMI) where you live.
First, check your AMI; if you make 80 – 150% of that amount, you can get 50% of the price of your stove back as a rebate (up to $840). If you make less than 80% of the AMI, you can get up to $840 back in rebates — up to 100% the price of the stove. You can head over here to find out some answers to some frequently asked questions.
Note: The Inflation Reduction Act doesn’t reduce your out-of-pocket price; you’ll have to pay retail for your stove, but the rebate reduces how much you’d ultimately end up paying for it.
You won’t be able to get a rebate until your state has set up an online rebate portal.
Before you decide to buy a new energy-efficient electric stove, it’s important to understand the difference between a “tax credit” and a “rebate”.
This isn’t a tax credit, which would reduce the amount you owe in taxes at the end of the year. Instead, this is a REBATE. This means after you buy your stove, you can show proof of your purchase and receive some of your money back.
However, there’s a crucial detail to keep in mind. You need to wait until your state sets up an online system for you to apply for this rebate. As of now, none of the states have this system ready. Moreover, the rebate isn’t retroactive, meaning it won’t apply to purchases made before the system is in place.
So, stay tuned and wait until the right time to make your purchase to take advantage of this money-saving opportunity.
It’s pretty easy to find a new electric stove for $840 or less — which means it could end up being free.
Obviously, there are a lot of different types of electric stoves out there. Depending on the make, model, and even store you’re buying from, prices can vary significantly. Even at Best Buy, Home Depot, and Lowe’s, you could pay anywhere from $529 to more than $2,600 for a new built-in electric stove.
Once your state releases which specific electric stoves qualify for rebates, be sure to browse around to find which option suits your needs the best and you may find one that you could get one totally free after rebate!
However, if you’re in the market for a new stove and can’t wait any longer for the rebates to become available in your state then we suggest you shop around the kitchen appliance deals at favorite retailers including Home Depot, Lowe’s, and Best Buy. Plus, for more tips on how you can save money on your next large appliance purchase, be sure to check out our top 12 tips and hacks!
You may also qualify for rebates on other energy-efficient appliances and home upgrades.
Might be a good time to brush up on our Best Buy hacks, Home Depot savings tips, and Lowe’s strategies. Although the new bill can help you upgrade your stove to a new, energy-efficient electric model, the Inflation Reduction Act also provides tax credits for the following qualifying energy-efficient products:
- Up to $1,750 for heat pump water heaters
- Up to $8,000 for HVAC heat pumps
- Up to $1,600 for air sealing, insulation, and ventilation
- Up to $840 for electric heat pumps or clothes dryers
- Up to $2,500 for electric rewiring
- Up to $4,000 for electric load upgrades
Note: The total rebates cannot exceed $14,000 for each home.
Oh, also: The government may soon ban the sale of new gas stoves.
In case you missed it, The Biden Administration has just announced that they’re considering banning new gas stoves in the future. The government says gas stoves can cause adverse side effects for humans and animals. They emit formaldehyde, carbon monoxide, and other harmful toxins into the air, and this pollution may cause respiratory problems in children.
A ban on gas stoves wouldn’t affect existing appliances but would prevent these devices from being sold in the future. You don’t have to switch, but you might want to while there’s an incentive; if your gas stove malfunctions, you wouldn’t be able to replace it with anything other than an electric stove if a ban happens.