The Inflation Reduction Act has been a gift that keeps on giving to both consumers and the environment. Now, taking advantage of a rebate involving energy-efficient electrical upgrades could put a whopping $14,000 back in taxpayers' pockets.
What home-upgrade rebates are available?
As detailed by Energy Star, a range of its certified products are eligible for tax credits under the IRA. This includes heat pumps for heating and cooling, heat pump water heaters, and certain weatherizing features such as attic insulation and sealing, and new windows. Other appliances that may qualify include more eco-friendly washers and dryers, stoves, and ovens.
Why is this important?
Given that many of us spend large chunks of time at home, going electric is one of the best ways to ensure better health, lower bills, and a cleaner environment.
For one, energy-efficient electric appliances eliminate large volumes of pollution that negatively impact our bodies. Gas stoves, for example, run on dirty fuel. They have been linked to an increased risk of asthma and release fumes known to cause cancer.
While the upfront cost of certain upgrades may initially seem daunting, electrifying your home appliances and personal vehicles will save you thousands of dollars in the long run.
As Energy Star points out, electrifying your home doesn't have to happen all at once. In fact, you may get more bang for your buck by stretching things out.
"Because of annual limits on the tax credit amounts, it may be prudent to spread the improvements over a few years," Energy Star explains. "That said, it's always wise to optimize your attic insulation before installing a new heat pump, so you don't pay for more heating and cooling than you actually need. Making these upgrades together in one year would allow you a tax credit of up to $1,200 for the insulation and up to $2,000 for the heat pump."
How can I get started?
Navigating how to best capitalize on the IRA for your individual or family situation doesn't have to be complicated.
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Electrification nonprofit Rewiring America has free tools, including a savings calculator, to help both homeowners and renters discover which incentives they may want to take advantage of first. It can also connect consumers with trusted contractors and expert advice to ensure a timely and affordable transition.
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