Savings Calculator Methodology
How we protect your data
We do not sell any of your personal data. We collect calculator inputs, including zip code and household information, and aggregate this anonymized data to better understand who is interested in the IRA incentives and build lists of qualified contractors. We also store the inputs in local storage inside your web browser to improve the user experience. Our privacy policy is here and our terms of use are here.
How we estimate your taxes
The United States taxes income progressively, meaning that how much you make will place you within one of seven federal tax brackets. It also takes into account whether you are single, jointly file as a married couple, or are considered a head of household. Once we have calculated federal taxes owed, we apply the non-itemized standard deduction that all Americans are eligible for regardless of filing status or income.
How we choose specific rebates for renters
For renters, we’re highlighting incentives for portable appliances, so you won’t have to leave the appliances or any potential savings behind. These portable appliances include window-unit heat pumps (which should qualify in 2025), electric stoves, heat pump clothes dryers, electric lawn equipment, electric bicycles, and electric vehicles. Many state and local utility incentives are also available for renters, so we display those based on the particular program eligibility.
How we estimate eligibility of the electrification rebates
The Department of Housing and Urban Development (HUD) calculates the Area Median Income (AMI) for every census tract and is available here. Eligibility for the electrification rebates is based on your household income in relation to your AMI. If your household income is below 80% of AMI, you are eligible for the maximum point-of-sale rebates. If you are between 80% and 150% of AMI, you are eligible for up to 50% of appliance and installation costs through point-of-sale rebates, and you can use tax credits to cover some of the remaining gap. In both cases, the maximum discount is $14,000.
HUD calculates the 80% AMI for households of 1-8 people. HUD applies exceptions and adjustments for many geographic areas, which makes the math pretty confusing! Depending on your inputted household size, we will look up the appropriate 80% AMI for your zip code. HUD does not yet calculate 150% AMI, so we have calculated that number ourselves based on the 80% AMI numbers.
Understanding the difference between HUD’s Median Family Income (MFI) and Area Median Income (AMI)
The term Area Median Income (AMI) is the term used more generally in the affordable housing industry. If AMI is used in an unqualified manner, this reference is synonymous with HUD's Median Family Income (MFI). However, if the term AMI is qualified in some way — generally percentages of AMI or AMI adjusted for family size — then this is a reference to HUD's income limits, which are calculated as percentages of median incomes and include adjustments for families of different sizes.
Where we got our data
Consumer Affairs
The Department of Housing and Urban Development (HUD)
The National Renewable Energy Laboratory (NREL)