By: Joseph Hudson
Recently the IRS and the Department of Energy have started to reward homeowners as well as some renters for electrifying their homes. Through a series of rebates and tax credits, consumers will experience savings when making qualifying electrification purchases. For example, air source heat pumps for space heating / cooling and heat pump water heaters (HPWH) will be eligible for a tax credit of up to $2,000 per year, and electrical panel upgrades installed in conjunction with a heat pump or heat pump water heater (HPWH) will be eligible for a tax credit of up to $600.
Major U.S. companies including Airbnb, Redfin, Lyft, Propel and others have joined the non-profit Rewiring America in a new consumer outreach and education campaign to connect American households with Inflation Reduction Act (IRA) rebates and tax incentives to go electric.
From the Rewiring America website – “There are 121 million households in the U.S. and the average American household will receive $10,600 in IRA (Inflation Reduction Act) benefits to fully electrify and save on average $1,800 each year going forward on energy costs by phasing out fossil fuels. Even renters can get in on the action with electric vehicles, and appliances and tools that can be transported to their next home, like countertop induction cooktops, portable mini split heat pumps, heat pump dryers and battery-powered yard equipment.” The rebates are reserved for low and moderate income households. The tax credits apply to anyone with adequate tax liability. For more information, see the Inflation Reduction Act Savings Calculator on the Rewiring America website: HERE.
So, is it time to upgrade your windows? Need a new air conditioner, electrical panel, stove or considering getting an electric vehicle? Find out more about how you can go electric and if there are possible savings and credits when you do that. More information is also located HERE.