Upgrading parts of your home or replacing things in your fixer upper can be exciting and yield positive change fast. When you are planning these upgrades, it’s always wise to see how you can make your improvements as energy efficient as possible. It’s also a good idea to double check if you are eligible for any home energy efficiency rebates.
The Adirondacks can have some tough winters so finding the right energy efficient products can save you money in the long term. While energy efficient products might add more cost up front, there may be savings over the long term thanks to the Inflation Reduction Act (IRA) passed in 2022.
To assist taxpayers, the government passed the Energy Efficient Home Improvement Credit and the High Efficiency Electric Home Rebate Program. Both laws focus on combating climate change by giving property owners tax credits for making their properties more energy efficient.
2 Types of Home Energy Efficiency Rebates
High Efficiency- Electric Rebates Based On Income
The Inflation Reduction Act allocated $4.275 billion to state energy offices to develop and administer a new high efficiency electric home rebate program. This home energy efficiency rebate program is reserved for households with a total income of 150 percent or less of your area’s median income. Low-income households at less than 80% of the area’s median income are also eligible to receive a rebate equal to the project costs. Households from 80%-150% of the area’s median income would be eligible for a rebate of 50 percent of the project costs.
These home energy efficiency rebates do have caps based on the project that is being done. This cap is $14,000 as a maximum benefit per home with an additional $500 if you are using a qualified contractor. The law also has some separate rebate amounts for multifamily buildings that are income eligible. Some notable rebates are:
- $1,750 for a heat pump water heater
- $8,000 for an HVAC Heat Pump
- $840 for an electric cooktop, stove, range, oven or heat pump clothes dry
- $1,600 for air sealing, insulation and ventilation
- $2,500 for electric wiring
- $4,000 for an electric load center upgrade
Updated Home Efficiency Tax Credits
In addition to the home energy efficiency rebates above, the Inflation Reduction Act reauthorized and edited the Home Efficiency Tax Credits. These credits began in January and will continue every year through 2032, giving eligible households the opportunity to claim a tax credit of 30 percent of the cost of the qualified energy efficiency projects up to $1,200 per year. The credits include weatherization and building improvements as well as appliances and other energy saving measures.
Some of the notable caps are:
- $600 For Energy Star rated exterior windows and skylights
- $250 For Energy Star rated exterior doors
- $600 for the highest efficiency tier of central air conditioners and other qualified gas, propane, or electric HVAC systems
- $150 for home energy audits
- $2,000 for electric heat pumps, heat pump water heaters, biomass stoves and boilers. The credit for installing the heat pump or heat pump water heaters does not count toward the $1,200 limit mentioned above.
If you are looking for more information or want to have a better understanding of how the Inflation Reduction Act applies to your income bracket you can visit the government’s official site . This website has the full breakdown on all home energy efficiency rebates the Inflation Reduction Act can offer.
If you are looking for advice on which improvements are likely to make your home more attractive to buyers as well as increase efficiency, give one of our team members a call! At Adirondack Premier Properties, we know our market and what buyers are seeking. Connect with us today for all of your real estate needs!