Take Advantage of Home Improvement Incentives with the Inflation Reduction Act of 2022
With the passage of the Inflation Reduction Act (IRA) of 2022, American homeowners now have access to billions of dollars in federal incentives for energy-efficient home improvements. These incentives include tax credits and rebate programs to help reduce the cost of replacing polluting gas stoves and furnaces with cleaner electric appliances and heating systems. The High-Efficiency Electric Home Rebate Act (HEEHRA) provides up to $14,000 per household in point-of-purchase rebates for low- and moderate-income families. The Inflation Reduction Act of 2022 also reshapes tax credits on home improvements, providing a $1,200 annual tax credit for green remodeling, up from what had been a $500 lifetime cap.
If you're considering home improvements, now is the time to plan and prepare. Identifying a home's flaws can be quickly and easily done through self-assessment. The U.S. Department of Energy provides a thorough guide and tips on how to make quick fixes. Also contact your local utility to see what services and financial incentives are available for professional energy assessments. Major fixes can cost a lot of money, but the Inflation Reduction Act and the Biden administration’s $1 trillion infrastructure law include funding for the Department of Energy’s Weatherization Assistance Program to help low-income households.
Lastly, make a list and check your electrical panel. By taking a speedy look at the appliances in their home, a family can figure out which ones they should replace with the help of HEEHRA rebates, and which ones they should tackle first. Low- and moderate-income households should check their eligibility for the HEEHRA program and pair it with federal energy efficiency and electrification tax credits. These credits are available now and can be applied at the point-of-purchase.
The Inflation Reduction Act of 2022 is a big win for green-home remodelers looking to make energy-efficient improvements to their homes. With so many incentives and programs available, now is the time to start planning and preparing to take advantage of these opportunities.
0. “The Inflation Reduction Act Is Delivering For America: Lowering Costs, Creating Jobs, And Spurring New Investments …” Senate Democratic Leadership, 8 Feb. 2023, https://www.democrats.senate.gov/about-senate-dems/dpcc/press-releases/the-inflation-reduction-act-is-delivering-for-america-lowering-costs-creating-jobs-and-spurring-new-investments-and-historic-opportunities-for-communities-across-the-country
1. “Rebates for home energy upgrades are coming soon. Here's how to plan” Canary Media, 7 Feb. 2023, https://www.canarymedia.com/articles/electrification/rebates-for-home-energy-upgrades-are-coming-soon-heres-how-to-plan
2. “Plan Now For Home Efficiency Federal Rebate Programs” CleanTechnica, 7 Feb. 2023, https://cleantechnica.com/2023/02/07/plan-now-for-home-efficiency-federal-rebate-programs/
3. “Inflation Reduction Act climate provisions could save you money with clean-energy tax breaks” KBZK News, 6 Feb. 2023, https://www.kbzk.com/news/local-news/inflation-reduction-act-climate-provisions-could-save-you-money-with-clean-energy-tax-breaks
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