The recently signed Inflation Reduction Act included a lot of green provisions, most of them will affect your tax return but some will not. This podcast discusses the rebates that are available for purchasing energy-efficient items and making certain improvements.
SO THIS IS NOT A TAX CREDIT?
Right, these are rebates that a person will receive.
WHAT KIND OF REBATES ARE AVAILABLE?
The rebate will depend on what is purchased and how energy efficient it is.
For appliances and heaters –
- Up to $840 in rebates for stoves, cooktops, ranges, ovens and certain clothes dryers.
- Up to $1,750 on heat pump water heaters.
- Up to $8,000 for heat pumps for heating or cooling.
DO ANY HOME IMPROVEMENT EXPENSES COUNT FOR THE REBATE?
Yes. There are other rebates available for –
- Insulation, air sealing and ventilation improvements up to $ 1,600.
- Electric wire upgrades up to $2,500.
- Up to $4,000 in rebates for electric load service center upgrades.
CAN ANYONE QUALIFY FOR THE REBATES?
Unfortunately not. There are income limits on the amount that families can have. The limits range from 80% to 150% of your area’s median income.
SO THIS CREDIT CAN REALLY HELP COVER THE EXPENSES OF THE PURCHASE.
Yes and no. Depending on the project, the credit cannot exceed a certain percentage of the total cost. But most rebates can cover up to 50% of the costs.
IS THERE A LIMIT ON THE TOTAL AMOUNTS OF THE REBATES?
Yes. Each qualifying family is limited to $14,000. The total program is worth $4.5 billion.
Be sure to talk to one of our professionals if you have any questions about high-efficiency home rebates.