While many tax credits for home appliances are expiring by the end of 2025, there are incentives still available for homeowners who want to make money-saving, environmentally friendly upgrades.
The New Republic explained what's available and what's not. While many EPA programs that assist farmers, green banks, nonprofits, and others have lost funding, homeowners can still access incentives for home upgrades, such as installing water heaters, heat pumps, and induction stoves.
These incentives come in the form of both tax credits and rebates. Tax credits come into play at tax time, and rebates reduce the upfront cost of purchase.
TNR spoke with David Friedman, senior director for federal policy at Rewiring America, who explained the status of each incentive.
The rebates were "a little more up in the air" for some time, he explained, although they're operating in several states. While only 10 states, as well as D.C., have the rebates in place, they will theoretically be able to expand, as every state except for South Dakota applied to participate.
For residents living in states with rebates, the discounts are significant. For example, federal rebates offer lower-income households $1,750 off heat-pump water heaters and $4,000 off a new electrical panel, TNR explained.
The federal tax credits, however, exist in all 50 states, but they will be disappearing by the end of the year. The tax credits cover up to 30% of project costs, which can still be up to $2,000 in the case of heat-pump water heaters and up to $600 for solar panels.
"I think that one thing that's become evident in the last year or so is that household energy costs — inflation, fossil fuel prices — those do seem to be more top of mind for Americans," Energy Innovation senior director Robbie Orvis told TNR. "Lower utility bills is the number one perceived benefit of renewables in much of the country."
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Not only is the equipment more affordable than ever, but upgrading to appliances that utilize clean energy is the best way to simultaneously lower your energy bills, improve your health and air quality, and reduce your environmental footprint.
If you're interested in making the upgrade, check out LG's line of efficient, money-saving heat-pump water heaters. LG also has a tool that helps you find water heater rebates based on your ZIP code to make the upgrade even more affordable.
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