How Homeowners Can Save Big and Help the Planet with the Inflation Reduction Act

The Inflation Reduction Act (IRA) is making waves by boosting the U.S. economy and helping the environment at the same time.

It’s been praised for cutting pollution and pushing for cleaner energy sources.

But what’s even better? It has real, tangible benefits for homeowners like you.
 

What’s in It for Homeowners?

The IRA offers tax credits and rebates for upgrading your home to be more energy-efficient.

Read: A Simple Guide to Applying for Home Renovation Grants and Rebates

Here’s what you can get:

• Up to $8,000 in tax credits for making your home more energy-efficient, like upgrading insulation or getting new windows.
• Up to $14,000 for switching to energy-efficient electric appliances, like water heaters or heating and cooling systems.
• $1,600 for weatherproofing your home to keep it comfortable year-round.
• $840 for installing an energy-efficient induction stove.

These savings go a long way in cutting your energy bills—and they’re good for the planet, too.

Want more details on which upgrades qualify? Check out this guide from Energy.gov.
 

How to Cash In on These Savings

Taking advantage of these benefits is easier than you might think. Here’s how:

1. Pick an eligible home upgrade: Choose from a list of improvements or appliances that qualify for the tax credits or rebates. You can find the list on Energy.gov’s Home Energy Rebates page.

2. File IRS Form 5695 with your taxes**: This form lets you claim the tax credit, which will either reduce the amount you owe or increase your tax refund. You can grab the form from the IRS website.

3. Check for state rebates: If your state offers rebates, you can apply for one after you’ve made the upgrade. Some states have programs already running, while others are waiting on approval. For updates on your state’s program, head to Rewiring America’s website.
    

Why These Upgrades Make Sense

The savings are great, but the long-term impact is even better. Upgrading your home not only lowers your energy bills—it helps reduce pollution and makes your home more comfortable.

If you’re unsure where to start, there are tools to make the process easier.

Rewiring America offers free resources to help you find contractors, calculate savings, and more.

With the Inflation Reduction Act, homeowners have a unique opportunity to save money, improve their homes, and help the planet. Why not take advantage of it?

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