What you need to know about the IRA: Area Median Income

The Inflation Reduction Act allocates rebates and tax credits to residents and households based on income.

For new electric vehicle purchases, there is an income limit in order to qualify for the tax credits ($300,000 adjusted gross income on a join tax return, and $150,000 for single tax returns).

Rebates for efficient appliances use area median income to determine the amount of rebate a household is eligible for.

• If a household's income is over 150% of the area median, they aren't eligible for rebates.
• However if a household's income is below 80% of the area median they may receive a rebate for the full cost of their upgrade, up to $14,000.

So how do you figure out your area median income?

The area median income is the midpoint of a designated region’s income distribution — half of households in the region earn more than the median and half earn less than the median.

Download this chart of 2024 AMI for Minnesota residents [PDF]

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Find out how much money you could get from rebates and tax credits with Rewiring America's Savings Calculator.

Please note: We're sharing resources to assist Minnesotans who are seeking information about federal funding opportunities. These resources are based on preliminary information released by the federal government. Program information may change as more guidance is provided by federal and state governments. For specific information on federal funding, please visit the relevant U.S. Government websites.