The government will pay you $1,600 to upgrade your home's energy efficiency. Here's how you can take advantage of this tax credit.
The scoop
The Inflation Reduction Act is the biggest piece of legislation aimed at combating rising global temperatures. This bill is not only good news for the environment but also for your wallet.
Under the IRA, homeowners are eligible for tax credits and rebates when they make certain energy updates to their homes. These rebates can amount to more than $8,000 in savings.
Some qualifying updates include weatherizing your home, switching to an induction stove, and installing an energy-efficient water heater. After weatherizing your home and improving your insulation, you can get a rebate of up to $1,600.
That $1,600 is not the only money you'll save, though. Fixing drafty windows and improving ventilation will also decrease your household's energy waste, reduce your total energy bill, and save you money in the long term.
To learn more about how you can save with different home upgrades, check out Rewiring America's free online tool. Thanks to this simple calculator, you can find available tax incentives and contractors that will make updating your home a seamless and cost-effective process.
How it's working
On top of the thousands of dollars you'll earn from the IRA, weatherizing your home will save you almost $300 each year on energy costs. By making simple changes to your home, such as switching to LED lightbulbs and sealing air ducts, you can help decrease the total amount of pollution and energy waste from your household, helping to create a cleaner, safer future.
Electrifying your home, vehicle, and appliances is another way you can take advantage of the IRA and save money while helping the environment. After rebates, smart lighting and a smart thermostat can save you $150 each year.
Consider utilizing organizations such as Arcadia and WattBuy that can help you transition your home toward energy efficiency.
🗣️ Should the government be paying us to upgrade our homes?
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🔘 Depends on how much it costs 🫰
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What people are saying
Homeowners are grateful for the tax incentives, as they enable them to make eco-friendly updates they typically would not be able to afford.
A homeowner in Minneapolis discussed the impact weatherizing her drafty home had on her family. "At least six months of the year, I'm saving between $40 and $60 a month," homeowner Jamie Laudert told CBS News after weatherizing her home thanks to the Minneapolis Climate Legacy Initiative. "It is definitely worth it, and I would definitely do it again. They just did so much for our household and helped us a lot that we are incredibly grateful for them."
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