The federal government wants to give your home more star power, in a manner of speaking.
Significant tax incentives are available — or expected soon — through the Inflation Reduction Act (IRA) for a range of efficiency improvements. There are also beaucoup bucks at hand to upgrade your appliances to the latest coveted Energy Star tech.
Energy Star, noted by the familiar blue square symbol, is a government-backed efficiency certification program that was started in 1992. Now the government wants to help you upgrade your home with better appliances that can save energy and money.
"For many homes, key elements of an Energy Star Home Upgrade are expected to deliver qualifying savings," Energy Star's Ann Bailey wrote on the program's website.
Some examples include a maximum rebate of $8,000 for a program-certified heat pump (depending on income level), and up to $840 for an induction stove. The rebates are available in New York and Wisconsin, with more states to follow. Health experts are continuing to study possible negative health impacts from breathing in fumes produced by gas stoves. So, the upgrade could provide a healthier environment in your living space, too.
Households of almost any size and income can enjoy this unprecedented time of government incentives. Part of the goal is to make the better tech accessible to more people. One example scenario provided by the White House involves a fictional couple, Mark and Lisa.
The construction worker and bank teller make a combined $60,000 a year and just bought their first home. They couldn't afford to upgrade the new digs with efficient appliances — until they learned about the rebates that are available.
"Now, since they make below 80% of their area-median income — they are eligible for rebates that cover up to 100% of the project costs," per the example, based on actual circumstances.
Another scenario highlights a dentist and engineer with a combined annual income of $250,000. They are eligible for a 30% tax credit on the cost of installing solar panels.
Navigating the rebates, on the federal and state level, can be complicated. Rewiring America is a free online tool that can easily get you through the weeds and outfitted with new appliances and energy upgrades, maximizing government incentives. You can even find qualified contractors for solar installations and weatherization projects.
Switching to electric appliances and vehicles is also a powerful way to limit heat-trapping air pollution, which NASA linked to an increased risk of devastating severe weather events.
But the monetary value might be the most immediate win. If you go all-in — with solar panels, a heat pump, and an electric vehicle — you could land around $20,000 in government tax credits through the IRA.
"President Biden's Inflation Reduction Act is addressing climate challenges head-on and accelerating the adoption of clean, affordable technologies," U.S. Environmental Protection Agency Administrator Michael S. Regan said in a press release.
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