Want an extra $8,000 to upgrade your home?
The government created what amounts to a personal savings account to help you save money while making your living space more comfortable.
Thanks to the Inflation Reduction Act, which passed in 2022, American households can now access thousands of dollars in tax credits and rebates to upgrade their homes with modern, money-saving technology — and an energy audit can help you find the best areas for improvement.
The scoop
Through the Home Efficiency Rebates program alone, you could get up to $8,000 to make your home more energy-efficient. But that's just the beginning. Households can save up to $14,000 total through various programs.
Environmental journalist Bill McKibben broke it down in a press briefing, saying, "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."
How it's helping
Want to slash your energy bills as winter moves in? Perform an energy audit to determine what inefficient appliances could be upgraded to save big bucks. The IRS wants to send you an energy efficient home improvement credit, which will cover $150 (or 30%) of that audit.
If the audit reveals your home's insulation needs an upgrade, start there. Thanks to the Inflation Reduction Act, you could get up to $1,600 back for improving the insulation in your walls and attic.
John E. Fernández, director of the MIT Environmental Solutions Initiative, emphasized this point when speaking to The Washington Post: "The absolute smartest, greatest return on investment, easiest, least expensive way to lower your energy cost is to make sure that the exterior wall of your house or your residence or your office building is performing as well as it possibly can."
Looking to upgrade that old stove, too? An $840 rebate is available for switching to a sleek new induction cooktop that's faster, safer, and cheaper to run than gas. As McKibben noted, "Your magnetic induction cooktop is better than the gas flame that you cook on, cheaper, and it doesn't give your kids asthma."
🗣️ Do you think home heating costs are higher than they should be?
🔘 Definitely 👍
🔘 Depends on the season ☃️
🔘 Depends where you live 🗺️
🔘 No 👎
🗳️ Click your choice to see results and speak your mind
Switching to electric appliances is one of the smartest ways to save money while creating a healthier home environment. If you're unsure where to start, Rewiring America has free tools to help you navigate available tax incentives and find qualified contractors in your area. Use its IRA Savings Calculator to estimate how much you could save and make these upgrades more affordable than you might think.
The opportunity to save may not last for much longer, though. President-elect Donald Trump has said he plans to "rescind all unspent funds" allocated for the program. While that would need to go through Congress, those interested may want to act sooner rather than later.
By taking advantage of these rebates to upgrade your home with energy-efficient technology, you're investing in your comfort while reducing harmful pollution. These improvements put cash back in your pocket and build a cleaner future for everyone.
Join our free newsletter for easy tips to save more and waste less, and don't miss this cool list of easy ways to help yourself while helping the planet.
Cool Picks
