Save Money and Go Greener: Taking Advantage of Tax Credits and Rebates from the Inflation Reduction Act and HEEHRA
American homeowners are now eligible for a variety of tax credits and rebates that can help them save money and make their homes greener, thanks to the Inflation Reduction Act (IRA) of 2022. The IRA includes incentives like tax credits and rebate programs meant to encourage homeowner investment in energy efficiency and clean-energy technologies. Tax credits are available for improvements like new solar panels, windows, doors and air conditioners, while rebates for larger energy-efficient updates are expected to become available later this year or next year.
In addition, 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 who are looking to replace fossil-fuel-burning equipment such as oil boilers or gas clothes dryers with more efficient electricity-powered units. Rebates are also available for homeowners who want to upgrade insulation, solar systems, electric cars and many other items.
To be eligible for HEEHRA rebates, households must earn less than 80 percent of the median family income in their area, and may need to spend thousands or tens of thousands of dollars beyond the rebate to install a ducted heat pump system or a heat pump water heater.
In order to take advantage of these rebates, homeowners should start by doing a do-it-yourself assessment of their home to identify weak spots and energy-efficiency improvements that may be needed. The Department of Energy provides a thorough guide for inspecting every nook and cranny, as well as tips for quick fixes. Households should also contact their utilities to see what services and financial incentives are available for more professional energy assessments.
In addition, people should take stock of their home appliances to decide which items they want or need to replace using HEEHRA rebates, and which appliances they should tackle first. Major fixes can cost a lot of money, but there is significant new funding for the Department of Energy’s existing Weatherization Assistance Program, which helps low-income households to make energy-efficiency upgrades.
Overall, the Inflation Reduction Act and the Biden administration’s infrastructure law are providing billions of dollars in incentives for American homeowners to make their homes greener and more energy-efficient. Now is the time to start planning and taking action to access these rebates when they become available.
0. “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
1. “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/
2. “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
3. “Reaping Green Home Energy Subsidies | Falmouth Columns | capenews.net” CapeNews.net, 10 Feb. 2023, https://www.capenews.net/falmouth/columns/reaping-green-home-energy-subsidies/article_8c41f771-30ba-55f2-ae09-ba5f3a9faadd.html