If you’re looking to upgrade your home, you may be able to save thousands of dollars by taking advantage of the Inflation Reduction Act, which includes tax credits and cash rebates for certain energy-efficient purchases.
When Paul Hope renovated his home, he tried to make eco-friendly choices. That included switching from a gas stove to an electric range.
“I’ve always preferred cooking on a gas range, but I knew electric and induction ranges had gotten a lot better over the years and that they’re way better for the environment,” Hope said.
With funding from Congress, the Inflation Reduction Act means homeowners can take advantage of up to $14,000 in rebates and tax credits for making energy-efficiency upgrades.
How much you’ll be able to get will depend on how much you earn, where you live and what improvements you make.
If you want to upgrade to a more eco-friendly stove, as Hope did, a rebate of up to $840 could make it within your budget. Plus, you may receive another $500 to help cover the costs of converting from natural gas or propane to electric.
The largest credits and rebates – as much as $8,000 off – are available for heat pumps, a high-efficiency system that heats and cools your home in place of a furnace or boiler and an air conditioner.
“While the upfront cost for a heat pump may be higher, these incentives will definitely help. And over the long term, you might actually save money depending upon where you live and what fuel and electricity cost in your area,” Hope said.
Other rebates will be available, too, including energy-efficient exterior doors, windows, and skylights.
The tax credits are claimed on income taxes. The rebates, however, are being handled by each state.
Depending on the state, they may not be available until later in the year, so it’s wise to check before you buy.