It’s hard to avoid news headlines of rising costs and environmental challenges we face as a global society. And you’re ready to do your part to live a more efficient lifestyle while lowering your bills. One option you have to do both is to use the IRA (Inflation Reduction Act) tax credits and rebates. But where do you start, and how can you take advantage of it for your home? Read on to find out more.<\/p>\n
The IRA empowers you to make changes in your energy use. It was designed to help you invest in upgrades you may have considered before but felt were too expensive. And while we\u2019ve seen energy-efficient savings programs in the past, the IRA provides value on a much bigger scale.<\/p>\n
In the grand scheme of the clean energy economy, this is a big deal. \u201cThe residential sector is a really critical piece of the emissions reduction puzzle,\u201d says Brandon Dyer, Sense\u2019s Senior Manager of Regulatory Affairs. \u201cIn order to get the full value out of the IRA, residential customers really need to take action themselves.\u201d<\/p>\n
The IRA is a win-win: you can take advantage of the tax credits and rebates to upgrade your home and combat one of the largest contributors to climate change.<\/p>\n
The two ways to benefit from the IRA are through rebates and tax credits. But at this time, only the tax credits are available, and they\u2019re planned to be in effect for the next decade.<\/p>\n
There are two main credits available for residential consumers:<\/p>\n
While rebates focus on providing you with direct refunds, tax credits are designed to offset any taxes you might owe. The rules and requirements vary by credit, but the IRS created a comprehensive FAQ sheet<\/a> to help you understand qualifications and how the credits work.<\/p>\n If you\u2019re ready and eager to plan for your clean energy future, we\u2019ve gathered a handful of moves you can make right now to ensure you\u2019re getting the most out of every IRA benefit.<\/p>\n Any cost-saving steps you take towards energy efficiency come with the bonus of making your home more enjoyable in the long run. The IRA helps you make those changes affordably, but it\u2019s always good to know where to start and what makes the biggest impact. Looking to save money and energy? Start here.<\/p>\n On a base level, an energy audit lets you identify the least energy-efficient places in your home and plan accordingly. But it can be more than that. \u201cAn energy audit sets the stage for opportunities in the home,\u201d says Dyer. \u201cSome things you can fix with little or no cost. But it also helps a customer prioritize where spending the money might have the biggest impact on energy consumption or comfort or health and safety in the home.\u201d<\/p>\n A professional audit shouldn\u2019t cost more than $150. Many utilities will offer free audits for their customers \u2014 but it\u2019s up to you to find out what\u2019s available in your area. They may also offer enhanced incentives alongside an energy audit, such as rebates or no-money-down financing. Federal and state<\/a> weatherization programs can even help you cover essential non-energy home repairs, clearing the way for you to then implement the energy efficiency solution. For example, fixing a leaky roof so you can add insulation to your attic.<\/p>\n You can prepare for an audit by listing any issues you\u2019re already aware of. For example, any noticeable drafts or leaks, older appliances, or even months when your bills are higher than usual.<\/p>\n The home energy audit tax credit lets you claim 30% of the costs up to $150.<\/p>\n File the correct form<\/a> and ensure that you use an auditor with the correct certifications and that you receive a report.<\/p>\n According to Dyer, weatherization isn\u2019t just a good idea \u2014 it\u2019s compulsory in cutting your home\u2019s energy waste costs. \u201cWeatherization is foundational,\u201d he says, \u201cand your home energy report will show you where to start.\u201d<\/p>\n Weatherization actions include:<\/p>\n The Energy Efficient Home Improvement Credit lets you claim a maximum of $1200 each year with:<\/p>\n File the right form<\/a> and ensure that you meet all requirements. Doors and windows must meet ENERGY STAR standards, and insulation and air sealing materials must meet International Energy Conservation Code (IECC) standards.<\/p>\n For now, you can focus on receiving tax credits for efficient heating and cooling systems, water heaters, and any other qualifying product listed by the IRS<\/a>. However, be on the lookout for rebates that help you with the electrification in your home, including transitioning to energy-efficient washers and dryers.<\/p>\n Since this is also part of the Energy Efficient Home Improvement Credit, you receive up to $3200 in tax credits. This includes appliances to a max of $600 and heat pumps and biomass stoves, and boilers up to $2,000 per year.<\/p>\n Make sure that you meet all the requirements<\/a>, and when filing taxes, fill out the right form.<\/p>\n The Residential Clean Energy Credit lets you install renewable energy into your home while helping you save on the cost. The credit covers solar electric panels, solar water heaters, wind turbines, geothermal heat pumps, fuel cells, and battery storage technology.<\/p>\n You\u2019ll save 30% on qualified renewable energy installation, including:<\/p>\n The included labor and installation costs are a standout feature. It\u2019s unique for federal dollars since other programs have only offered to cover the material cost of solar panels.<\/p>\n There is no limit, but the credit may not exceed what you owe. However, you can carry forward any unused credit for upgrades in the future.<\/p>\n Before investing, determine whether you meet all qualifications and requirements, and fill out the correct form<\/a> at the time of filing your taxes.<\/p>\n Right now, we\u2019re all playing the waiting game when it comes to IRA rebates<\/a>. They\u2019re expected to land in late 2023, and each state will need to determine qualifications before the money starts flowing. But consumers can expect offerings like:<\/p>\n Everyone will benefit from IRA rebates, but if you have a lower income, you\u2019ll save even more. Until the rebates arrive, you can take advantage of the numerous tax credits and any existing Federal rebates and incentives<\/a> so you can begin reaping the rewards of a cost-and-energy-efficient home ASAP.<\/p>\n Even with all this information at hand, IRA benefits can still be hard to fully grasp. Luckily, every day brings new rebate<\/a> and tax credit<\/a> resources, in-depth guides, and other helpful tools<\/a> to help you make the right choice for your household. For a great example, check out the Department of Energy\u2019s (DOE) Energy Savings Hub<\/a>. And make sure to keep an eye out for new resources about the IRA \u2014 and more \u2014 from us.<\/p>\n","protected":false},"excerpt":{"rendered":" It’s hard to avoid news headlines of rising costs and environmental challenges we face as a global society.<\/p>\n","protected":false},"featured_media":2282,"template":"","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"1","_relevanssi_noindex_reason":"","footnotes":""},"consumer-blog-category":[7],"content-type":[13],"featured":[],"class_list":["post-2281","consumer-blog","type-consumer-blog","status-publish","has-post-thumbnail","hentry","consumer-blog-category-energy-usage-tips","content-type-article"],"acf":[],"yoast_head":"\n4 actions you can take to benefit from the IRA\u2019s tax credits<\/h2>\n
Action #1 – Get an energy audit<\/h3>\n
How you benefit<\/h4>\n
What to do<\/h4>\n
Action #2 – Weatherize<\/h3>\n
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How you benefit<\/h4>\n
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What to do<\/h4>\n
Action #3 – Upgrade your appliances, heating\/cooling systems, and more<\/h3>\n
How you benefit<\/h4>\n
What to do<\/h4>\n
Action #4 – Invest in renewable energy upgrades<\/h3>\n
How you benefit<\/h4>\n
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What to do<\/h4>\n
Stay tuned for rebates<\/h3>\n
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