Blistering heat and unusually cold weather can put your heating and cooling units into overdrive. While it's great to stay comfortable, the real challenge often comes when you receive your energy bill. It's amazing how high energy costs can suddenly catch our attention during extreme temperature swings.
It's not too late to start thinking about optimizing your home's energy efficiency even before the weather extremes hit. We understand that the upfront costs of these improvements might give you pause. The good news is, there are incentives available right now that could change the game for you, and we're here to help you make the most of them.
Introducing the Inflation Reduction Act - a pathway to significant tax savings that can make a big difference in your wallet:
1. Energy Efficient Home Improvement Credit (EEHIC)
The EEHIC is a federal tax credit designed to lighten the financial burden of qualified energy-efficient home improvements. It rewards you with 30% of the cost of these improvements, up to a maximum of $3,200 per year. This credit is available until 2032, allowing you to spread out your home improvement costs over the next decade while maximizing your savings potential. Please note that specific energy efficiency standards must be met, and improvements should be made to your primary residence.
2. Residential Clean Energy Credit (RCEC)
Similar to the EEHIC, the RCEC offers up to 30% of the expenses for installing new energy-regulating systems, such as solar, wind, geothermal, biomass, and fuel cell power. This means you could receive a substantial tax credit on installing solar panels or other qualifying systems.
3. Home Energy Rebate Program
Though not a tax credit, this program offers rebates that can give your improvement projects an extra boost, especially when it comes to electric appliances. Eligibility is based on your family's income, making it accessible for a wide range of homeowners. Rebates cover items like stoves, ovens, electric wiring, insulation, air sealing, ventilation, and heating or cooling with a heat pump.
These incentives are time-sensitive, so it's important to act now to secure your savings. The Home Energy Rebate Program, for instance, is set to distribute $4.5 billion in rebates to qualifying families by state and tribal governments, with funds available until September 30, 2031.
To learn more about eligibility and how to claim your rebates, visit https://www.energy.gov/scep/home-energy-rebate-program