Thanks to the Inflation Reduction Act, you could get your hands on up to $8,000 in rebates to make energy-efficient home upgrades and reduce your monthly energy bill.
Passed in 2022, the IRA is the largest piece of climate legislation in history, unlocking $8.8 billion for homeowners to save big on the latest green technologies that put more money in their pockets while cooling the planet.
As CNBC reported, the government divided the rebate funding into two programs: the Home Efficiency Rebates program and the Home Electrification and Appliance Rebates program.
The former provides up to $8,000 to homeowners who cut their energy use by at least 35% by installing insulation, heat pumps, Energy Star-rated appliances, or induction stoves, for example.
"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," Bill McKibben, one of the nation's top environmental journalists, said during a press briefing last year.
Electrifying your home, appliances, and vehicle is one of the most effective ways to lower your energy bill and benefit the planet.
Figuring out how to take advantage of the rebates can be confusing, but the nonprofit Rewiring America simplifies the process. Its free Incentive Calculator shows you exactly how much you can save on electric appliance upgrades, what tax incentives you're eligible for, and how to access the money. You can even find contractors to install your new appliances, making it a one-stop shop for all your electrification needs.
Since the IRA makes clean energy technology affordable and accessible for Americans, it's no wonder so many people are taking advantage of the program's tax breaks and credits. Claiming these funds is a no-brainer if you want to get paid to reduce your energy bill and help the planet.
"We installed a heat pump last year and were able to claim $2000 on our taxes for 2023. The paperwork wasn't the most [straightforward] (taxes never are), but we … saved all the invoices and were able to submit and get the credit without much trouble!" one of The Cool Down's community members shared.
So, if you're considering making any home energy upgrades, don't forget to save those receipts so Uncle Sam can reward you for being a good steward of the planet.
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