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This new law is like a free '$8,000 bank account' for remodeling your home — here's how to take advantage of it

"The good news is that these technologies are better than the ones that they replace."

Bill McKibben Inflation households savings account

Photo Credit: iStock

What if we told you that the federal government set up an $8,000 savings account just for you to improve your home and lower your energy bills?

Though Uncle Sam didn't literally do this, he may as well have.

In 2022, Congress passed the Inflation Reduction Act, aka the IRA, its largest-ever action to fight the overheating of our planet. Included in the IRA are a ton of tax credits and rebates for homeowners to go green and save some cash on their energy bills at the same time, many of which can be applied for here

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For example, through the IRA, you can get a rebate of up to $1,600 to weatherize your home with improved insulation, which would certainly reduce your monthly energy bill

And if you wanted to install an efficient induction stove instead of the gas ones that leak harmful pollution into your home, you could get a rebate of up to $840, too.

Bill McKibben, one of the nation's leading environmental journalists, has lauded the IRA for its efforts to eliminate the financial burdens of improving Americans' homes.

"In essence, the IRA creates an $8,000 bank account for every American household … if people figure out how to access it and use it," McKibben said during a press briefing.

Luckily, organizations like Rewiring America are helping Americans access these "bank accounts." On its site, Rewiring America has an "IRA Savings Calculator" tool that shows you exactly how much you could save, along with instructions on how to redeem that money. 

But the financial savings aren't the only reasons to make these home improvements now, as McKibben has eloquently explained.

"The good news is that these technologies are better than the ones that they replace. Your magnetic induction cooktop is better than the gas flame that you cook on, cheaper, and it doesn't give your kids asthma," he said. "The heat pump is an elegant replacement for the furnace and cheaper to use in the long run."

So if you want to do any home improvements or renovations, check to see if you can dip into your new "bank account." If you don't, you could be flushing money down the toilet. 

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