Want to lower your energy bills and get paid for it? It sounds too good to be true, but the government wants to give you $1,200 to help you make an often-overlooked home upgrade that could slash your home energy bills by 20%. Plus, you'll be helping the planet, too.
The scoop
Upgrading your home's insulation can earn you up to $1,200 in government tax credits thanks to the Inflation Reduction Act, a law that marks Congress's biggest clean energy and climate action to date.
For those who qualify for IRA tax credits, the government will pay for 30% of eligible product costs when updating your home insulation. According to EnergyStar, eligible items include "typical bulk insulation products" such as batts, blow-in fibers, rigid boards, expanding spray foam, pour-in-place foam, and more.
Products that air seal to reduce air leaks can also qualify as long as they come with a Manufacturer's Certification Statement. This includes caulk designed to air seal, weather stripping, house wrap, and more.
If you're curious about how much you can save when upgrading your home's insulation, there's a free online tool to help you navigate available rebates and tax credits. Rewiring America, an electrification nonprofit, has a no-cost online savings calculator to help you identify available tax incentives and discounts through the IRA. Just answer seven questions and wait less than a minute to see which savings you can claim.
How it's working
Making home energy improvements, like updating your attic or wall insulation, is one of the best ways to help your wallet and the planet.
By upgrading your home's insulation, you'll keep excess heat out during the summer and prevent it from escaping during winter, making your home much more efficient at maintaining a comfortable temperature. This is much better for the climate since your heating and cooling system won't have to work as hard, reducing your home's carbon output.
Improving your home's insulation can also lower your monthly energy costs. The Department of Energy reports most homeowners can save up to 20% on heating and cooling costs by adding insulation or reducing air leaks around their homes.
According to recent data from the Internal Revenue Service, homeowners have already received over $3 billion for new insulation thanks to the IRA.
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What people are saying
Many climate activists have long supported the IRA for making eco-minded home upgrades more affordable and practical for Americans. But, not everyone supports current IRA incentives, including the current administration.
President Donald Trump has suggested plans to dismantle the IRA, which could reduce or eliminate government incentives for climate-minded home renovations. Major changes to the IRA would ultimately require an act of Congress, but given the uncertain future, taking advantage of IRA incentives sooner rather than later could save you thousands.
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