Did you know that upgrading your home to be more energy efficient can save you money today, while helping the planet tomorrow?
The Inflation Reduction Act – the biggest climate bill in US history – is making home energy upgrades more affordable. Below are just a few ideas to get you started.
Energy Efficiency Home Improvement Credit
The Energy Efficiency Home Improvement Credit offers up to $1,200 for upgrades to windows, doors, water heaters, HVAC, insulation, and home energy audits, and up to $2,000 for Heat Pump technology. This energy efficiency tax credit can be used every year through 2032.
Tip: Spread your upgrades over a few years to maximize this credit!
Residential Clean Energy Credit
The Residential Clean Energy Credit offers up to 30% of the project cost for installing solar panels, geothermal systems, and other renewable energy solutions.
Tip: You can carry forward excess credit to reduce taxes in future years.
Home Electrification and Appliance Rebate and the Home Efficiency Rebate
Other programs like the Home Electrification and Appliance Rebate and the Home Efficiency Rebate are available in some states – Virginia’s program is expected to launch in early 2025.
Tip: Combine tax credits with rebates to maximize your savings.
Beyond immediate tax savings and rebates, energy-efficient improvements can significantly reduce utility bills over time, increase your home’s value, and lower your carbon footprint. For example, a typical solar panel installation can save homeowners over $1,000 annually on electricity costs while contributing to a cleaner energy future.
We don’t know the impact the new presidential administration will have on these benefits, so we suggest taking advantage of them while you can.
Alexis Advisors is on a mission to help you identify opportunities that support your financial goals while contributing to a healthier planet. And yes, you can do both!
Interested in how energy efficiency upgrades can align with your financial goals? Contact us to learn how we can help you save money and make an impact.
About the Author
Samantha Vicchiarelli, ChFC®
Samantha’s journey into financial planning was inspired by her own personal experience of unexpectedly becoming a caregiver for an aging parent. Faced with the task of managing financial decisions without proper guidance, she felt compelled to channel her insights into assisting others facing similar challenges, providing them with the guidance and resources needed for peace of mind.