The Inflation Reduction Act, recently passed by Congress, offers rebates and tax breaks for qualifying homeowners who choose to install or upgrade to energy-efficient products. Examples include:
- Installing insulation. This includes weather stripping on doors, caulking around windows and adding insulation to the attic. You can receive a rebate of up to $1,600 for these projects, and they can save you around 10% per year on your energy bills.
- Upgrading your water heater. High-efficiency all-electric heat pump water heaters use 1/3 of the electricity that conventional electric water heaters use, and you can get a rebate of up to $1,750.
- Installing new windows and doors. Replacing old or damaged windows increases the your homes' energy efficiency, and qualifies for tax credits of up to $1,200 each year.
- Replacing your electric panel and electric wiring. You can receive rebates of up to $4,000 to upgrade your electric panel, and up to $2,500 to rewire your house. These improvements reduce the amount of energy it takes to power your home and prevent short circuits and overloads.
Read more on home energy upgrades from BobVila.com. You can use your Capital Reserve Account to cover these upgrades. Also, home improvements over $2,500 can help reduce your shared appreciation mortgage payoff (if you have one).
