Inflation Reduction Act can help save you money | Local 20/20

Cynthia Bratz

What if you could reduce your carbon footprint and save money at the same time? The Inflation Reduction Act (IRA), the biggest climate bill in U.S. history, will help many Americans reduce their home energy costs and go electric. The High-Efficiency Electric Home Rebate Act (HEEHRA) was included in the IRA of 2022.

Take your time and check it out. The rebates will start in 2023, after state-run programs are developed.

Here are steps to help you maximize savings when it’s time to buy:

Determine your eligibility for rebates. The HEEHRA Program was designed to make switching from gas to electric more economical for many people, including those who can least afford it.  

For Jefferson County, the current AMI (from the Area Median Income Lookup Tool) is $79,600, so those earning less than $63,680 (in 2022 dollars) are potentially eligible to have 100 percent of their costs covered, although rebates are capped at specific dollar amounts. (The AMI may be adjusted in 2023, when this program starts.)  

Rewiring America, a nonprofit research and policy group focused on energy efficiency, shows funding available and how you qualify: rewiringamerica.org/app/ira-calculator.  

Wait until the Washington State Energy Office has implemented the program, which may be mid- to late-2023. Although the federal Department of Energy leads the programs, each state will have its own version.

Research additional financial programs. If you’re not eligible for the HEEHRA rebates, or if our state program doesn’t cover what you want or need, you have alternatives. You could qualify for new IRA tax credits under the Energy Efficient Home Improvement credit (Tax Form 25C). You may be able to deduct up to 30 percent of the cost for work on your breaker box (up to $1,200)….

Read complete post here:
Source link