TL/DR –
The Inflation Reduction Act offers rebates on energy-efficient electrical upgrades, which can amount to as much as $14,000 for taxpayers. A range of Energy Star certified products are eligible for tax credits under the act, including heat pumps, heat pump water heaters, certain weatherizing features, and eco-friendly appliances. Energy Star suggests spreading the home electrification process over a few years to get more from the tax credits, and using organizations like Rewiring America, which offers free tools and expert advice, to navigate the available incentives.
The Inflation Reduction Act offers a rebate on energy-efficient electrical upgrades, potentially saving taxpayers $14,000.
What home-upgrade rebates are available?
Energy Star lists tax credits for IRA-certified products such as heat pumps, heat pump water heaters, attic insulation, sealing, new windows, and eco-friendly appliances like washers, dryers, stoves, and ovens.
Why is this important?
Transitioning to electric appliances helps ensure better health, lower bills, and a cleaner environment. Plus, there are numerous tax savings and rebates for energy-efficient home upgrades.
While the initial cost can be daunting, going electric and electrifying personal vehicles can save thousands in the long term. As Energy Star suggests, the transition to electric appliances can be gradual to maximize benefits.
Spreading improvements over years can be more cost-effective, with potential tax credits up to $1200 for insulation and $2000 for heat pumps.
How can I get started?
Capitalizing on the IRA doesn’t have to be complicated. Rewiring America, an electrification nonprofit, provides free tools like a savings calculator to help homeowners and renters discover which incentives to consider first.
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