WASHINGTON (NEXSTAR) – The recently passed federal law to fight climate change includes provisions to help Americans save money. Some rebates are available now because they are extensions of existing programs and tax credits can be written off when you file your 2022 taxes.
Americans can now access thousands of dollars to make their homes more energy efficient.
David Smedick with RMI, a non-profit that focuses on clean energy, explained “the Inflation Reduction Act, especially for the building sector, has the opportunity to be just a massive game changer.”
Advocates say the rebates and tax credits the new law provides put major home efficiency upgrades within reach for many consumers.
“A low-income household could receive $14,000 for energy electrification retrofits in their house,” Smedick said.
Smedick says low- and middle-income Americans can use that money to install heat pumps, insulation and electrical wiring.
Plus, a 30% tax credit is available for installing solar panels and energy-efficient windows, doors and appliances — things the American Clean Power Association says bring more savings.
“You’re using less power at home, that means you’re saving on your electricity bill,” Heather Zichal of the American Clean Power Association said.
However, Richard Meyer with the American Gas Association says the Inflation Reduction Act falls short, saying there are “provisions that focus exclusively on electric equipment without really focusing on whether it improves overall energy efficiency or reduces greenhouse gas emissions.”
Some question if small savings on energy bills justify the high cost of the upgrades, but supporters say the savings will be especially helpful to people who are replacing aging and broken systems.