Economic experts have praised the Inflation Reduction Act for its investments in expanding the U.S. economy while reducing pollution and transitioning away from dirty energy.
The policy has broad implications for the nation as a whole and for individual homeowners who can use government money to improve their lives and the planet.
The IRA offers various tax credits and rebates for making sustainable home updates. These savings go up to $8,000 for home efficiency upgrades and $14,000 for home electrification and appliance upgrades. Up to $1,600 is available to weatherize your home, and up to $840 is available to install an energy-efficient induction stove.
A leading environmental journalist, Bill McKibben, observed in a Covering Climate Now press briefing: "In essence, the IRA creates an $8,000 bank account for every American household … if people figure out how to access it and use it."
These rebates put money back into the hands of American citizens interested in making their homes more efficient and lowering their energy bills.
To take advantage of the nearly $8.8 billion in home energy rebates, choose an eligible appliance or home improvement project from this list.
When you file your taxes, submit IRS Form 5695 to claim your tax credit. The tax credit amount you qualify for is taken away from your federal taxes, so you either owe less in taxes or get a bigger tax return.
Alternatively, you can claim a rebate if your state has launched its rebate program. Some states already have rebates available, while others have submitted their applications for program funding and are waiting on approval from the Department of Energy.
These government tax credits and rebates are economically attractive on their own, but the long-term impacts of making home upgrades are even more impressive.
🗣️ Should the government be paying us to upgrade our homes?
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🔘 Depends on how much it costs 🫰
🔘 Depends on what it's for 🏡
🔘 No way 🙅
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"The good news is that these technologies are better than the ones that they replace," McKibben said.
Electrifying your home and making smart technology improvements are among the most empowering things you can do to personally address the state of our environment today. While climate issues seem too big and out of reach, the IRA offers opportunities for individuals and families to take matters into their own hands to benefit themselves, their communities, and the planet.
For help navigating the available tax incentives and finding contractors in your area, check out Rewiring America's free tools.
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