Part of last summer’s Inflation Reduction Act was a new $9B federal program increasing rebates and tax credits on energy efficient home renovations. This program will be administered by the state you live in and won’t kick in until later this year.
The individual household savings will range from hundreds of dollars to thousands depending on the cost and type of project. These rebates and credits can be used in conjunction with any existing federal program.
As such, if you were planning on doing this sort of work, I’d suggest putting it off until this program is in place.
The new rebates and credits include…
1 – Up to $150 for a Home Energy Audit
2 – 30% of the cost of Rooftop Solar and Battery Storage Installation
3 – Up to $1,200 for Insulation and Energy Efficient Doors and Windows
4 – Up to $2,000 for replacing an old air conditioner and heat furnace with a new electric heat pump doing double duty
5 – Purchasing an electric vehicle and installing an electric charging station provides up to $7,500 for a new vehicle, $4,000 for a used one, and another $1,000 for the charging station.
Let me leave you with this.
This exciting and wonderful news, but there’s only one basic problem. Like most home energy efficiency credits most taxpayers won’t qualify.
The majority of these savings come with income exclusions. If you make too much money, you won’t qualify.
Of course, in order to be able to afford doing what they’re talking about, one must make a certain amount of money in order to pay the bill. This creates an enigma.
I’m telling you this because as soon as these programs are rolled out, I know I’m going to get lots of phone calls. The salesmen pushing these items are going to make all sorts of promises.
But when the rubber hits the road and I’m doing your returns next spring, I’d rather not hear the moaning and groaning if I tell you that we weren’t able to provide any or only a portion of these savings.
If you’re going to do the work on your home anyway then great, fine, and wonderful. Let’s all save the planet one solar panel at a time.
But if we aren’t able to get the rebates and credits promised you by the salesmen because you actually made enough money to pay the bill, then please don’t blame me. They’ve set an almost impossible standard in order to qualify for any of these savings.
We’re all going to get through this. Let’s get through it together.
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