!["[It] creates an $8,000 bank account for every American household … if people figure out how to access it and use it."](https://www.thecooldown.com/wp-content/uploads/2024/11/iStock-2181463309.jpg?w=1920&h=800)
If you plan on upgrading your home, there's no better time to take the plunge — especially with a little help from some government-funded rebates and deals.
The scoop
In 2022, Congress passed the Inflation Reduction Act (IRA), which provides tax credits and rebates for a wide variety of home upgrades that save money for homeowners and are environmentally friendly as well.
Many of the upgrades improve the efficiency of your home, like weatherization, which the IRA offers up to $8,000 for through the Home Efficiency Rebates program. There are also benefits of up to $14,000 through the Home Electrification and Appliance Rebates program, which encourages people to switch to electric appliance options like induction stovetops.
Navigating the tax incentives and rebates can be a little overwhelming, but organizations like Rewiring America are available to help you determine what's best for your home and the best available options.
Wattbuy is also a great place to start. Based on your address, they analyze your home's size, energy use, local trends, the weather, and other data to help determine the best options for your home, from something as simple as switching to LED bulbs to installing solar panels.
How it's working
Overall, electrifying your home (and even car) is one of the most effective ways to help the environment outside and inside your home. RMI reports that because of gas appliances present in more than half of all U.S. households, the air quality is often worse than outside, thanks to pollutants from the appliances.
The Environmental Protection Agency estimates you can save 15% on heating and cooling costs by making the kinds of green upgrades covered by the IRA. Those upgrades also help reduce energy usage and lower pollution from things like fossil fuels, which release greenhouse gases that contribute to climate change.
What people are saying
Bill McKibben, a leading environmental journalist, has praised the IRA, saying last year, "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."
Utilize the benefits offered by the IRA sooner rather than later, though. President-elect Donald Trump has stated that he intends to gut the law, stating in September, "We will rescind all unspent funds under the misnamed Inflation Reduction Act." Any changes to the IRA would ultimately require an act of Congress, which makes the future of the IRA uncertain but not inevitable.
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Whatever upgrades and benefits you may take advantage of can have long-term benefits for you and your wallet and a greener future.
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