You can upgrade your home to conserve energy and money during the hottest and coldest months of the year and even get a tax credit for doing it.
The scoop
In 2022, the U.S. government passed the Inflation Reduction Act, which helps homeowners upgrade their homes with cheaper and cleaner energy sources. You can get tax credits and rebates for making these home improvements.
The IRA has set aside $8,000 through the Home Efficiency Rebates program for households.
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One way you can receive a tax credit is for upgrading your windows. According to Energy Star, you can get money back under the windows and skylights tax credit. First, you must determine if you live in a climate zone, and your windows must meet "Energy Star most efficient criteria to be eligible for the 25C Federal Tax Credit."
You can claim 30% of the cost of the product and up to $600 in tax credits.
How it's working
Weatherizing your home is crucial for saving money on your electric bills and is a great place to start when you upgrade your home. On top of the tax credit, you can save about $300 a year on electricity. You can waste a lot of money if your windows aren't efficient because they can let in hot or cold air, meaning you have to turn up the AC or heat to keep your home comfortable.
Navigating these tax credits can be tricky, though. That's where Rewiring America comes in. It has a handy free tool that will calculate how much you can get in tax credits. All you have to do is answer seven simple questions.
Along with saving you money, weatherizing will also help the environment. According to The Climate Reality Project, residential and power plant pollution accounts for about 21% of energy consumption in the United States. Weatherizing your home can help cut polluting gases and improve air quality. It can even increase the value of your home.
What people are saying
"These new resources are key to making progress in fighting the climate crisis and will help make energy efficient options more affordable and accessible," EPA Administrator Michael Regan said.
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