With the Inflation Reduction Act, you might receive up to $8,000 for home efficiency and sustainability renovation projects — or you might be eligible for even more.
This IRA legislation was passed in 2022, driven by the Biden-Harris administration, with sweeping goals to reduce the levels of heat-trapping gas nationwide by 40% by 2030 — which would support the long-term health and well-being of Americans across the country.
As part of this ambitious climate plan, homeowners can claim tax credits and rebates for green home renovations.
For example, the Home Efficiency Rebates program gives money back (up to $8,000) to qualifying homeowners for projects that reduce energy usage and lower their bills in return. Think: better home insulation, more efficient sealing on windows and doors, and energy-efficient heating systems.
The Home Electrification and Appliance Rebates program offers savings (up to $14,000) for income-qualified homeowners switching to efficient electric-powered appliances (though these can't already be getting rebates from the other program).
That's before even considering federal tax credits for energy-efficient upgrades.
Ditching gas appliances for more energy-efficient electric equipment lowers energy consumption as well, yielding even more savings on energy bills. This also reduces dependence on dirty energy sources, which, when burned, release heat-trapping gases that contribute to the planet's overheating, which has supercharged extreme weather events.
The trend of building more sustainable and climate-resistant homes is growing. Earlier this year, Los Angeles built its first healthy home of its kind — and it produces more renewable energy than it consumes. An Australian architectural firm designed a nature-inspired home along the Great Barrier Reef to withstand disaster.
Ultimately, the IRA has yielded massive savings for Americans.
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"Last year, 3.4 million American households and consumers used tax credits to lower their energy bills and save $8.4 billion," one U.S. Department of the Treasury statement read.
Of course, to take advantage of these savings, you'll want someone you can trust to help you sort through all of the details. The nonprofit Rewiring America has free tools, including a handy IRA Savings Calculator that you can play around with to help you calculate just how much you can save and find the right contractors for your renovation job.
If you have plans to upgrade your home, it might be prudent to take advantage of available credits and rebates as soon as possible. President-elect Donald Trump has mentioned that he would like to eliminate the IRA, per the Salt Lake Tribune. However, repealing the legislation would require an act of Congress.
"The Inflation Reduction Act is … making home energy upgrades more affordable and cutting monthly utility bills," U.S. Secretary of the Treasury Janet L. Yellen said in a press release."The law has lowered the cost of clean energy upgrades for more than 3.4 million American families, saving them hundreds, if not thousands, of dollars annually on their utility bills for many years to come."
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