There are a ton of advantages to going green with your home or vehicle, but neither of those things are necessarily cheap. Fortunately, the federal government is now willing to help you pay for it through the Inflation Reduction Act.
The scoop
The Inflation Reduction Act, or the IRA, is a bill passed in 2022 designed to combat climate change. It offers incentives for home and vehicle owners who opt for green alternatives. Among those incentives are up to $14,000 in rebates for homes that upgrade to energy-efficient appliances and wiring.
Upgrading your stove or clothes dryer to something that consumes less energy won't just reduce your carbon footprint and earn you an IRA tax credit. It will also reduce your energy bills and provide you with a safer, more effective appliance.
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Upgrading your home's wiring and electrical panel is also covered under the IRA. Old wiring can be both inefficient and dangerous, making the upgrade an easy choice for many. Nonprofit organization Rewiring America will help you do it, too. They offer an IRA Savings Calculator and other tools to help you take advantage of these amazing rebates.
The IRA also offers incentives to those upgrading to an electric vehicle. Their clean vehicle tax credit provides up to $7,500 toward your EV. This will reduce your carbon output and save you a ton of money on gas and repairs.
How it's working
IRA tax credits are available to anyone who made a qualifying energy-efficient upgrade to their home after January 1, 2023. How you can do this can vary by state, but in general you'll want to save your proof of purchase and claim the credit when you file your taxes.
It's important to note these rebates may not exist forever. President-elect Trump has stated on numerous occasions that he wants to eliminate the subsidies. Although it will take an act of Congress to make this happen, you should still take advantage as soon as possible.
What people are saying
In a 2022 press briefing, environmental journalist Bill McKibben highlighted one of the most enticing aspects of the IRA's rebates.
"The good news is that these technologies are better than the ones that they replace," he said. "Your magnetic induction cooktop is better than the gas flame that you cook on, cheaper, and it doesn't give your kids asthma."
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