If you’re looking to upgrade your home, you may be able to save thousands of dollars by taking advantage of the Reduced Inflation Act, which includes tax credits and cash rebates on certain energy-efficient purchases.
When Paul Hope renovated his house, he tried to make eco-friendly choices. That includes switching from a gas stove to an electric stove.
“I’ve always preferred gas cooking, but I know electric and induction cooktops have gotten a lot better over the years and a lot better for the environment,” says Hope.
With funding from Congress, the Reduced Inflation Act means homeowners can take advantage of up to $14,000 in rebates and tax credits to make energy efficiency improvements.
How much you can earn depends on how much you earn, where you live, and what upgrades you make.
If you’re looking to upgrade to a more eco-friendly hob, like Hope does, a discount of up to $840 can fill your budget. Additionally, you may receive another $500 to help cover the costs of converting natural gas or propane to electricity.
The largest credits and rebates – up to $8,000 off – are available for heat pumps, high-efficiency systems that heat and cool your home in lieu of a furnace or boiler and air conditioning.
“While the up-front costs for heat pumps may be higher, these incentives will certainly help. And in the long run, you might actually save money depending on where you live and how much gas and electricity costs in your area,” says Hope.
Other discounted rates will also be available, including energy efficient exterior doors, windows and skylights.
The tax credit is claimed on income taxes. However, rebates are handled by individual states.
Depending on the state, they may not be available until later in the year, so it’s best to check before you buy.
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