Upgrading your home can be an expensive endeavor. Thousands of dollars can go into updating your kitchen before you even address your pipes, heating, and insulation.

The great thing is that all of these upgrades don't have to be so expensive if you are aware of the right government rebates and tax credits.

The scoop

The U.S. Department of Energy is offering tax credits or rebates for a wide variety of eco-friendly home upgrades, including induction stovetops, heat pumps, and solar panels.

When you visit the energy savings hub of Energy.gov, the website provides instructions for filing for a tax credit and a rebate. It also includes links to download the correct forms to add to your tax return, as well as instructions on how to check the status of your rebate.

These rebates were made possible because of the Inflation Reduction Act, passed in 2022. However, the Big Beautiful Bill legislation will soon eliminate many of the tax credits by the end of the year, and it's important to act quickly to take advantage of the opportunity.

How it's helping

These rebates and tax credits can save Americans thousands of dollars on their home upgrades.

One of the potential rebates is for installing an induction stovetop. An induction stove is not only eligible for an $840 rebate on the installation, but these stoves also save households thousands every year in energy costs. Gas stoves leak methane, according to Scientific American, which affects both your indoor and outdoor air quality and increases your energy costs. Induction stoves also cook more quickly than gas stoves, cook more evenly, and are easier to clean up. 

Another big tax credit available is for solar panel installation, with a rebate worth up to 30% of the cost of your panels. This credit is incredibly valuable as it's one of the eco-friendly upgrades with a higher initial cost. Solar panels also eventually pay for themselves as they can save your household up to $1,500 every year on your electric bills and overall bring it close to $0. To compare installation services, it's best to use a TCD-vetted service like EnergySage, as that can save you up to an additional $10,000 on your installation.

To further your savings on energy, it's recommended to upgrade your HVAC to a heat pump, as it can save you an additional $400 a year. Companies like Mitsubishi can help you find an affordable heat pump; plus, an ENERGY STAR-certified electric heat pump for space heating and cooling can be eligible for a Home Electrification and Appliance Rebate of up to $8,000.

What everyone's saying

There's no better time to upgrade your home and to take advantage of the rebates and tax credits while they are still available. When you make your home a smart home and weatherize your home, you set up your household for lower energy bills and a lower carbon footprint.

Should the government continue to give tax incentives for energy-efficient home upgrades? Absolutely 💯 No 🙅 Depends on the upgrade 🤔 I don't know 🤷 Click your choice to see results and speak your mind.

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