Discover the transformative impact of the Inflation Reduction Act of 2022 on energy-efficiency home upgrades. This groundbreaking legislation, known as IRA, is reshaping the landscape for homeowners seeking sustainable living solutions.
Key Benefits of Home Upgrades using the Inflation Reduction Act:
The IRA allocates a substantial $369 billion to facilitate the adoption of clean energy, offering Federal income tax credits and rebates until 2032. This financial support extends to various energy-efficient home improvements, from swapping gas stoves for induction to replacing traditional water heaters with energy-efficient alternatives like heat pump water heaters.
Examples of IRA Tax Credits for Homeowners:
- Home Energy Audits: Enjoy a 30% tax credit, up to $150, for conducting energy audits to enhance your home’s efficiency.
- Heat Pumps: Benefit from a 30% tax credit for both the purchase and installation costs of heat pumps.
- Windows and Skylights: Receive a 30% tax credit (up to $600 annually) for upgrading to energy-efficient windows and skylights.
- Electric Vehicles: Seize up to $7,500 toward a new electric vehicle (EV) purchase and up to $4,000 for a used EV, contributing to a cleaner and greener lifestyle.
Maximizing Savings: A Guide to Home Upgrades using the Inflation Reduction Act
To make the most of these opportunities, explore comprehensive resources. From consumer guides and fact sheets to IRS updates and Energy Star-certified equipment, empower yourself to navigate the IRA landscape successfully.
In conclusion, the Inflation Reduction Act of 2022 is not just a financial support system; it’s a catalyst for sustainable living. Elevate your home, embrace clean energy, and unlock significant savings through targeted home upgrades using the Inflation Reduction Act. #HomeUpgrades #InflationReductionAct #CleanEnergy
Here are five resources to get you started:
- Guides. The Natural Resources Defense council’s (https://www.nrdc.org/stories/consumer-guide-inflation-reduction-act) “A Consumer Guide to the Inflation Reduction Act” talks about how to tap IRA tax credits and rebates. Rewiring America’s resources include downloadable IRA Fact Sheets (https://www.rewiringamerica.org/ira-fact-sheets), the Rewiring America’s Guide to the Inflation Reduction Act https://www.rewiringamerica.org/IRAguide), and a calculator (https://www.rewiringamerica.org/app/ira-calculator), “How much money can you get with the Inflation Reduction Act?”
- Internal Revenue Service (https://www.irs.gov/inflation-reduction-act-of-2022). Stay current on IRS updates on IRA and find the appropriate tax form (Form 5695) to calculate and take residential energy credits.
- Energy Star (https://www.energystar.gov/about/federal_tax_credits/non_business_energy_property_tax_credits. Learn about the array of Energy Star-certified equipment—heat pumps, water heaters, biomass fuel stoves, electric panel upgrades, and so forth—eligible for the tax credits.
- Recent articles. See “Inflation Reduction Act Tax Credits and Rebates: Save On Home Energy Upgrades With These Incentives” (https://www.cnet.com/home/energy-and-utilities/save-on-your-next-home-energy-upgrade-with-these-incentives/) and “Save More with Tax Credits for Energy-Efficient Home Improvements” (https://www.kiplinger.com/taxes/605069/inflation-reduction-act-tax-credits-energy-efficient-home-improvements).
Author: James Murphy, Realtor, NAR GREEN designee
COLDWELL BANKER | REALTY
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