Under the Inflation Reduction Act, the largest piece of climate legislation in U.S. history, it's becoming cheaper and more accessible for Americans to make energy-efficient upgrades to their homes and vehicles.
Through the IRA's Home Electrification and Appliance Rebates program, you could get up to $14,000 from Uncle Sam to remodel your home with sleek, modern appliances.
Energy Star says the HEAR program "is focused on efficient electrification projects for low-to-moderate income households." The program is being implemented at the state level and is rolling out nationwide, with rebates in most states expected soon.
According to Energy Star, the funds could make it cheaper to install several energy-saving appliances, such as heat pumps for heating and cooling, clothes dryers, induction stoves, and heat pump water heaters. In addition, you'd be eligible to get money back for weatherization features like attic insulation, sealing, and new doors or windows.
Combined with possible utility or state rebates and tax credits, you could save thousands to electrify your home while also doing the planet a favor by reducing the pollution that your appliances produce.
For example, with an Energy Star home upgrade, you could receive up to an $8,000 rebate for a certified heat pump, up to $6,500 for electrical wiring and panel improvements, and up to $1,750 for an Energy Star–rated heat pump water heater.
While the initial investment in these clean technologies can be off-putting for many people, that investment can be lower with the incentives — and the long-term savings on energy bills, improvements to well-being, and environmental benefits are well worth the upfront cost.
For instance, nonelectric household appliances such as gas stoves release dangerous chemicals like benzene and nitrogen dioxide, which can cause lung problems and other health issues — and worsen indoor air quality.
When you upgrade to an induction stove, you're not only saving money but also protecting your family's health.
Simply put, electrifying your home and vehicle is one of the most impactful ways to help your wallet and the planet. If you're wondering how to take advantage of the IRA tax breaks and credits, the nonprofit Rewiring America can help simplify the process.
Its free incentive calculator will tell you exactly what you qualify for and how to claim the money. When you're ready, you can even find reliable contractors to install appliances or upgrade your home's electrical systems through the site.
As one of The Cool Down's members explained, it's never been easier (or cheaper) to go green: "We installed a heat pump last year and were able to claim $2,000 on our taxes for 2023. [We] were able to submit and get the credit without much trouble!"
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