Federal tax credits for home appliance upgrades are disappearing — here's how to take advantage before they're gone for good

By the end of 2025, federal tax credits for home upgrades will expire. Luckily, though, there's still time to take advantage of these incentives and save thousands of dollars.

The scoop

Realtor.com issued a reminder to homeowners that savings for energy-efficient appliances are available until the end of 2025. After Dec. 31, incentives under the Inflation Reduction Act will start to be eliminated. 

One way homeowners can save big before December is by upgrading their kitchen and taking advantage of stackable tax incentives and rebates (the latter of which will remain intact when the calendar turns to 2026). Thanks to the High-Efficiency Electric Home Rebate Act program, you can get help switching your gas stove to induction.

"While the headline number for induction stoves is often quoted around $840, the program can offer up to $2,000 for qualifying projects," reported Realtor.com.

How much you qualify for in rebates comes down to your household's income. While low-income households can qualify for full rebates, median-income households can still qualify for partial rebates if their state offers them. 

How it's helping

Switching to an induction stove is a cost-effective solution for avoiding the dangers associated with gas stoves. Unlike gas stoves, induction cooktops do not release harmful pollutants into your kitchen. This helps reduce respiratory complications, such as asthma. 

Induction stoves also help optimize your cooking and cleaning time. Since induction cooktops are flat, they're much easier to clean than gas stoves. They also heat up faster, helping you spend less time in the kitchen.

For renters or homeowners who may not be able to afford a kitchen renovation, you can still reap the benefits of induction stovetops. Plug-in burners are an affordable option, starting at just $50. 

From an environmental standpoint, induction stovetops are more energy-efficient than gas stoves, reducing the amount of pollution coming out of your household. 

Pairing your induction stove with solar energy is the ultimate hack, though. With solar energy powering your home, you can bring the cost of your house's energy down to or near $0. For homeowners looking to go solar, EnergySage offers free services that compare quotes from vetted installers in your area. Thanks to its help, homeowners can save up to $10,000 on solar installations. 

What's your biggest motivation for converting to electric appliances? Saving money 💰 Modernizing my home 🤖 Making my family safer 💪 I don't want to convert 👎 Click your choice to see results and speak your mind.

Another way you can save on home energy is by upgrading your HVAC system to a heat pump, which can save you an average of nearly $400 per year on energy costs. Mitsubishi is a great place to start when trying to find an affordable heat pump for your home. 

What everyone's saying

TCD readers who have made the upgrade to induction shared their positive experiences. 

"A portable induction cooktop is a great way to try out induction for a low cost and get used to the technology while improving indoor air quality," wrote one TCD reader from Oregon.

"We've learned how unhealthy it is to be in close proximity to a gas stove so decided to go with an induction stove," added another TCD reader.

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