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The government is paying out $8.8 billion in home renovation incentives — this tool will show you how much you can get paid

You may need to act soon if you want to take advantage of these tax credits.

You may need to act soon if you want to take advantage of these tax credits.

Photo Credit: iStock

Thinking about home renovations? This may be your sign to act. If you are looking to make energy-efficient upgrades, you could lower your heating and cooling costs and get money back from the federal government.

The Inflation Reduction Act offers $8.8 billion in home energy rebates to help hundreds of thousands of households decarbonize. Homeowners can receive up to $8,000 per year in tax credits for energy-efficient upgrades to their primary residences. Unlike other programs, the IRA has no lifetime cap, meaning you can claim up to $8,000 annually through 2032 for qualifying improvements.

But if you take things a step further — by, for example, upgrading your electrical panel, insulation, or major appliances — you might qualify for up to $14,000 in rebates.

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In 2023 alone, 3.4 million Americans took advantage of these tax credits to make their homes more energy-efficient, according to the White House.

The credit for solar panels was the most popular, according to Department of the Treasury data, with more than 750,000 American households claiming it in 2023. This was followed by credits for insulation and air sealing, exterior windows and skylights, and exterior doors.

Not all states offer the IRA rebate program, but organizations such as Rewiring America can help you figure out which credits can help you make your dream renovations happen. This nonprofit provides resources to calculate your savings, access rebates, and find local contractors who specialize in affordable, energy-efficient upgrades.

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The more households embrace clean energy updates, the greater the collective impact on the planet. Swapping to energy-efficient appliances, improving home insulation, and adopting electric vehicles are not only good for the environment but can also save you hundreds of dollars each month on utility costs.

If you are looking to take advantage of these tax credits, you may need to act soon. Within hours of being sworn into office, President Donald Trump announced a flurry of executive orders that will impact America's ability to take climate action, including the rolling back of environmental protections and withdrawing from the Paris Agreement, among others. Trump has signaled in the past that he would like to get rid of the IRA as well, though that would require an act of Congress.

With the future of these incentives uncertain, now is an ideal time to make energy-efficient upgrades that can benefit both your home and the environment.

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