The Inflation Reduction Act can help with energy efficiency home improvements.
According to UPI, United Press International, energy efficiency can save homeowners and renters hundreds of dollars a year, and the new Inflation Reduction Act includes a wealth of home improvement rebates and tax incentives to help Americans secure those saving. It extends tax credits for installing energy-efficient windows, doors, insulation, water heaters, furnaces, air conditioners or heat pumps, as well as for home energy audits. It also offers rebates for low- and moderate-income households' efficiency improvements, up to US$14,000 per home.
Source: Burek, Jasmina - UMass Lowell. (September 1, 2022). Inflation Reduction Act can help with energy efficiency home improvements. Retrieved from https://www.upi.com/Voices/2022/09/01/home-improvement-energy-efficiency/4371662037417/
INFLATION REDUCTION ACT
Green Home Improvements
Tax credits for energy-efficient home improvements are extended and expanded by the Inflation Reduction Act.
If you're planning a few home improvements that will boost the energy efficiency of your house, you may save some money on your projects under the Inflation Reduction Act, which was signed into law in August. One of the bill's main goals is to address climate change and slow down global warming. And while the new law primarily helps businesses adopt more eco-friendly measures and jump-start clean energy production, there are incentives for ordinary Americans to go green and save some green, too.
For example, homeowners can cut their tax bill even more if they install new energy-efficient windows, doors, water heaters, furnaces, air conditioners, and the like. That's because the legislation extends and enhances two tax credits that reward "green" upgrades to your home.
The annual limits for specific types of qualifying improvements will also be modified – and for the better. Beginning in 2023, they will be:
$150 for home energy audits;
$250 for an exterior door ($500 total for all exterior doors);
$600 for exterior windows and skylights; central air conditioners; electric panels and certain related equipment; natural gas, propane, or oil water heaters; natural gas, propane, or oil furnaces or hot water boilers; and
$2,000 for electric or natural gas heat pump water heaters, electric or natural gas heat pumps, and biomass stoves and boilers (for this one category, the $1,200 annual limit may be exceeded).
Source: Mengle, Rocky. (September 16, 2022). Save More on Green Home Improvements Under the Inflation Reduction Act. Retrieved from https://www.kiplinger.com/taxes/605069/inflation-reduction-act-tax-credits-energy-efficient-home-improvements
INFLATION REDUCTION ACT
What does this mean for homeowners?
What the Inflation Reduction Act Means for Homeowners—Big Takeaways That Could Affect Your Budget
The act delivers a 30% federal tax break for rooftop solar installations for 10 years, for example. It also provides savings of up to 30% on other household amenities, like heat pumps.
The act also allows up to $840 to offset the cost of heat-pump clothes dryers or electric stoves, up to $4,000 for electrical panel upgrades to support new appliances, up to $1,600 for insulation and sealing costs, and more.
Source: Willcox, Kathleen. (August 17, 2022). What the Inflation Reduction Act Means for Homeowners—Big Takeaways That Could Affect Your Budget. Retrieved from https://www.realtor.com/news/trends/what-the-inflation-reduction-act-means-for-homeowners/