How Homeowners Can Save Big with the Inflation Reduction Act
- Author: Elmer Schuster
- Posted: 2024-10-16
The Inflation Reduction Act (IRA) has been a game-changer for the economy and the environment.
Experts applaud the Act for its efforts to grow the U.S. economy while reducing pollution and shifting towards clean energy.
But here’s the best part: individual homeowners can benefit from this too, with government incentives that help save money and improve your home simultaneously.
Read: Short on Home Renovations? Discover How the Government Has Already Given Billions to Help You Upgrade Your Home
What Homeowners Can Get
If you’re a homeowner, the IRA offers tax credits and rebates for making energy-efficient upgrades to your house. Here’s what you could get:
- Up to $8,000 in tax credits for improving your home’s energy efficiency, like better insulation or new windows.
- Up to $14,000 for upgrading to electric appliances, like energy-efficient water heaters or HVAC systems.
- $1,600 for weatherproofing your home, which helps keep the heat in during winter and the cool air in during summer.
- $840 for an induction stove, which is more energy-efficient than traditional gas or electric stoves.
These savings go straight into your pocket and help reduce your energy bills in the long run.
For more details on qualifying upgrades, you can check out this guide from Energy.gov.
How to Get These Savings
Claiming these benefits is easier than you might think:
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Pick an eligible upgrade: Choose a home improvement or appliance that qualifies for the tax credit or rebate. You can see a list of eligible upgrades on Energy.gov's Home Energy Rebates page.
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File IRS Form 5695 when doing your taxes: This form helps you claim the credit, which will reduce the amount you owe in federal taxes or increase your refund. You can find the form on the IRS website.
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Claim a rebate from your state: If your state offers rebates, you can apply for them after your home upgrade. Some states are already rolling out these programs, while others are still in the approval process. For more info, check out Rewiring America's website.
Why These Upgrades Matter
Beyond the immediate financial benefits, these upgrades are an investment in the future.
By making your home more energy-efficient, you’re helping to reduce pollution and doing your part to fight climate change.
Plus, you’ll continue saving on energy bills for years to come. It’s also a small but important way to make a big difference, not just for your home but for the planet.
Need Help?
If all of this feels a little overwhelming, don’t worry—there are tools to help. Rewiring America offers free resources that can guide you through the process, from finding a contractor to calculating your potential savings.
The Inflation Reduction Act provides an opportunity to save money, improve your home, and help the environment. Now’s the time to take advantage of it!
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