In 2022, Congress passed the Inflation Reduction Act, which has been lauded as "a free $8,000" savings account from the government. Included in the IRA are tax credits and rebates for homeowners to save some cash on their energy bills if they go green. The money back can exceed $8,000 for households, depending on how the homeowner takes advantage of the act.
Two years on, states are feeling the effects of the IRA, according to Cipher. Nevada, Wyoming, Arizona, Tennessee, and Montana have gained the most clean energy money relative to the size of their economies. The overall investments are even higher in California and Texas, which saw $94 billion and $69 billion, respectively, in clean tech investments, according to Cipher.
Those interested can see a map of all U.S. states and territories and their IRA savings statuses at Energy.gov.
Nevada has made great strides in utility-scale solar and storage installations, as well as clean aviation fuel manufacturing. Meanwhile, Wyoming has invested in wind farms and carbon capture projects.
John Podesta, the climate adviser to the Biden administration, said in a recent press briefing reported on by Cipher that "the law provides 10-plus years of certainty through expanded and enhanced clean energy tax credits, signalling to the business community that they can think big and make long-term decisions."
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However, not all individuals have the ability to reap the benefits of the IRA yet. Residents of Nevada, Wyoming, Tennessee, Montana, and Texas are not yet able to apply for rebates themselves, according to the Department of Energy.
To this point, though, residents of California, Arizona, New Mexico, Colorado, Wisconsin, Michigan, Georgia, New York, Rhode Island, Maine, and Washington, D.C., are eligible. Meanwhile, other states are still in the application process or awaiting approval.
President-elect Donald Trump has stated he wants to dismantle the IRA, however. With the uncertainty, now is the best time to take advantage of these home renovation rebates.
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While it can be slightly confusing to estimate how homeowners can receive the benefits, handy tools like the nonprofit website Rewiring America can streamline the process. Its IRA savings tools help to show homeowners exactly how much they can save, along with instructions on how to redeem the tax credits and rebates.
If homeowners don't know where to start with clean renovations, an induction cooktop, which helps decrease gas stove pollution, or solar panels, which can save you up to $1,500 annually in energy savings, are both eligible for tax benefits.
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