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The Inflation Reduction Act 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 tax credits coming your way.
Chances are, the provisions in this bill make it possible for you to get at least 50% off the cost of a new electric stove — and in some cases, you could 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 tax credit 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 tax credits on a number of cleaner-energy products, including electric stoves.
You can get up to $840 in tax credits 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 as a tax credit (up to $840). If you make less than 80% of the AMI, you can get up to $840 back in credits — up to 100% the price of the stove.
Note: The Inflation Reduction Act doesn’t reduce your out-of-pocket price; you’ll have to pay retail for your stove, but the tax credit reduces how much you have to pay at tax time (or increases how much you’ll get in a refund).
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.
Here are some electric stoves available at these national retailers, and how much you could save with the new tax credits:
Hotpoint 30-Inch 4 Elements 5-Cubic Foot Freestanding Electric Range
- $529 at Lowe’s
- Less than 80% AMI: Get all $529 back in tax credits
- 80% – 150% AMI: Get $264.50 back in tax credits
GE 30-Inch 5-Cubic Foot Electric Range
- $548 at Home Depot
- Less than 80% AMI: Get all $548 back in tax credits
- 80% – 150% AMI: Get $274 back in tax credits
Amana 30-Inch 4 Elements 4.8-Cubic Foot Freestanding Electric Range
- $599 at Lowe’s
- Less than 80% AMI: Get all $599 back in tax credits
- 80% – 150% AMI: Get $299.50 back in tax credits
GE JB645DKBB 30-Inch Electric Range
- $758 at Home Depot
- Less than 80% AMI: Get all $758 back in tax credits
- 80% – 150% AMI: Get $379.00 back in tax credits
GE 5.3-Cubic Foot Freestanding Electric Convection Range
- $849.99 at Best Buy
- Less than 80% AMI: Get $840 back in tax credits
- 80% – 150% AMI: Get $425 back in tax credits
Frigidaire Gallery 30-Inch 5.4-Cubic Foot Self-Cleaning Air Fry Convection Oven Slide-In Electric Range
- $1,299 at Lowe’s
- Less than 80% AMI: Get $840 back in tax credits
- 80% – 150% AMI: Get $649.50 back in tax credits
Note: The full details of how electric stove rebates will be administered are still murky. But most likely, you’ll need to submit an application to find out how much of an electric stove rebate you’re entitled to. And also make sure you hang on to your receipts and other proof of purchase info.
You can also get tax credits for a bunch of other energy-efficient products.
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 Energy Star-rated 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 credits 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.