How to Get the Most Out of the Inflation Reduction Act
Money talks, and in the case of the expanded federal Inflation Reduction Act (IRA), it’s talking big. The IRA is generally known for the expansion of benefits related to solar panels, but it encompasses much more than that. This comprehensive legislation includes home energy tax credits and rebates for homeowners to make their homes more energy efficient. However, the act itself covers more than just solar. It can help you get a new water heater, provide rebates for window and door replacements, and can help you get a home energy audit.
Encouraging Clean Power
The IRA, despite its name, is first and foremost a climate change law designed to help homeowners and businesses in the United States shift away from fossil fuels. Part of this includes the Residential Clean Energy Credit, which provides solar tax credits of up to 30% of the cost to install:
- Solar electric panels
- Roof integrated solar arrays
- Solar water heaters
- Wind turbines
- Geothermal heat pumps
- Fuel cells
- Battery storage technology (beginning in 2023)
Energy-Efficient Home Improvement Credits
Beyond solar, the IRA also provides benefits, such as incentives and tax credits, for various home improvement projects. The Energy Efficient Home Improvement Credit focuses on helping you insulate your home, improving your efficiency by reducing your energy loss. Similar to the Residential Clean Energy Credit, which focuses on solar, this credit can also equate to as much as 30% of qualified expenses. Qualified expenses may include:
- Exterior doors
- Exterior windows or skylights
- Insulation and air-sealing materials or systems
- Central air conditioners
- Water heaters (heat pumps or natural gas varieties)
- Air-source heat pumps
- Gas and oil hot water boilers (high-efficiency models)
- Biomass stoves and boilers
- Electrical components needed to support these systems
Some of these categories have caps on the available home energy tax credit amounts, so make sure to speak with a qualified representative from Bachman’s to get all the details!
Maximizing Your Benefits
To make sure you make the most of these incentives, work with a qualified contractor who can walk you through the process and make sure you don’t miss out on any options.
Energy Audit: Start with a home energy audit to identify your home’s specific needs. Our contractors can pinpoint areas for improvement, helping you prioritize your upgrades.
Solar Panel Installation: If you’re considering solar, take advantage of the generous solar tax credit. Consult with reputable solar installers, like Bachman’s Roofing, Solar & Remodeling, to explore your options.
Window and Door Replacements: Drafty windows and door gaps lead to significant energy loss. If you’re considering window and door replacements, Bachman’s has the experience to get it done while guiding you through the IRA to use their Home Improvement credits to help offset the cost.
Rebate Programs: Explore the High-Efficiency Electric Home Rebate Act (HEEHRA), especially if your income meets the requirements for rebates covering a portion or even the entire cost of the products.
The Inflation Reduction Act is a transformative piece of legislation, offering homeowners unprecedented opportunities to make their homes energy-efficient. Whether you’re considering solar panel roof installation, solar ground arrays, home improvements, updated appliances, or any other energy upgrades, work with an experienced contractor from Bachman’s who can walk you through the process. You’ll be able to strategically plan to leverage the available tax credits. Give us a call at (610) 678-8004 to take the initiative and improve your home’s energy efficiency.
