If you did not already know about the Inflation Reduction Act (IRA), this article will provide you with a quick overview on how it can positively impact you during your home remodeling process.
In addition to combating inflation rates, the IRA incentivizes reducing the carbon footprint we leave on the world. This includes vehicle and home appliance choices.
What does that mean for your next home remodeling project?
According to The White House, starting in 2023, families can save more than $1,000 per year. Additionally, they can receive rebates by installing energy efficient home appliances. Rewiring America, the leading electrification nonprofit, has done a deep dive into the IRA. They explain that low- to moderate-income households will earn direct rebates if they install new, energy efficient appliances. Additionally, there are a few tax credits that can be claimed within this bill:
- Energy Efficient Home Improvement credit: Allows households to deduct from their taxes up to 30 percent of the cost of upgrades to their homes, including installing heat pumps, insulation and, importantly, upgrading their breaker boxes to accommodate additional electric load.
- New Energy Efficient Home credit: Providing up to $5,000 for developers to build homes that qualify for the Department of Energy’s Zero Energy Ready Homes standard. This applies to new single family, multifamily and manufactured homes, as well as existing homes that undergo a deep retrofit.
- Commercial Buildings Energy Efficient credit: Offering $2.50 to $5.00 per square foot for businesses achieving 25 to 50 percent reductions in energy use over existing building performance standards.
How can you take advantage of the IRA?
While designing your next home renovation, some changes to consider making for IRA benefits include choosing electric appliances such as stove top, ranges, and wall ovens versus those that utilize gas. Other choices include adding solar on your roof and electric heat pumps. Can your home’s electrical box accommodate for the switch? Updating your electrical box can also be considered as an energy efficient change and can be an incentive.
When considering your next kitchen or home renovation with us, and you want to make the swap to electric appliances to reduce your carbon footprint, don’t hesitate to ask us about your options. We want you to receive the benefits from the tax credits associated with the Inflation Reduction Act!
You can contact us at 779-423-0354 or send us an email at firstname.lastname@example.org
Macktown Construction Group is currently serving the Northern Illinois and Stateline area for home remodels, home renovations, kitchen remodels, bathroom remodels, commercial renovations, outdoor living renovations, home additions, garage renovations, basement renovations, and more.
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