A homeowner went to the r/askanelectrician forum on Reddit asking if they qualify for a tax credit for upgrading their home's electrical panel. They want to upgrade their electric from 100 amps to 200 amps for a solar-powered heating and cooling system, wondering if part of the cost can be written off under the $500 billion U.S. Inflation Reduction Act (IRA).
One Redditor who actively posts in electricity-related forums commented with their two cents. Pointing to screenshots of IRA's tax credit qualifications in the original post, the Redditor said upgrading an electric panel does, in fact, meet the criteria for a rebate.
"My guess is yes," they wrote.
The scoop
The commenter is referring to the IRA's Energy Efficient Home Improvement Credit. As of 2024, the credit applies to home renovations like electrical upgrades, switching to central air conditioning, adding or upgrading insulation in the walls, and installing exterior windows and skylights — changes that reduce the amount of energy a property consumes.
Homeowners can receive a maximum of $3,200 for the home improvement credit, and $1,200 is designated for home improvements, according to the IRS.
For electrical panel upgrades in particular, the tax credit reimburses 30% of the costs up to $600 a year. To qualify, upgrades must meet National Electric Code standards, increase to a minimum voltage of 200 amps, and be made in conjunction with energy-efficient projects like solar panels, according to Energy Star.
How it's helping
The Energy Efficient Home Improvement Credit is just one of several IRA credits that can save homeowners thousands on home improvements that reduce energy usage. In 2023, the IRS provided $8.4 billion in credits for clean home renovations. Rewiring America provides free tools to help navigate available tax incentives, find contractors, and make home renovations cheaper.
Credits are applicable to the installation of renewable energy systems and electric vehicle charging stations in homes and the construction of sustainable homes, all of which can be stacked to maximize savings. Rebates are even offered to low and moderate income households upgrading to greener amenities like electric stoves. Less energy usage means lower electricity bills.
By implementing changes like switching to appliances like Copper's induction stove, homeowners can significantly reduce the amount of pollution from their homes, improving indoor air quality. Beyond homeowners, drivers can receive credits for switching from gas-guzzling cars to Tesla's EVs, curbing planet-warming pollution contributing to the changing climate.
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Should the government continue to give tax incentives for energy-efficient home upgrades? Click your choice to see results and speak your mind. |
Absolutely 💯 It's important to note that IRA tax credits face an uncertain future as President-elect Donald Trump has repeatedly said he wants to eliminate them. While that decision requires Congressional approval, taking advantage of incentives sooner rather than later could save consumers thousands of dollars.
What people are saying
As for upgrading electrical panels, people on the internet express excitement over the credit.
"This is effing great news," one Redditor wrote.
"I need to upgrade mine too," wrote another.
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