President Biden’s Inflation Reduction Act is set to also tackle climate change by helping Americans find ways to reduce their carbon footprint. As part of the act, there will be up to $14,000 in rebates and tax credits for those who choose to make their homes more energy-efficient.
The home upgrades that they can take on include the installation of heat pumps and the changing of electric appliances.
As around 40% of carbon emissions come from buildings, these incentives should help lower the overall fossil-fuel emissions according to Lauren Urbanek, senior energy policy advocate at the nonprofit Natural Resources Defense League.
In an interview with CBS MoneyWatch, Urbanek said that the act gives serious incentives through tax credits and direct cash rebates to those who want to update their homes.
The incentive allows for two different rebate programs.
The HOMES Rebate Program can help those who want to make their entire home more energy efficient. Depending on how much their energy usage is reduced they can get higher amounts in rebates. Depending on the household income the rebates may also be higher.
The High-Efficiency Electric Home Rebate Act (HEEHRA), will provide those from low- and middle-income families rebates to upgrade their home to electricity by installing heat pumps or electric clothes dryers. Per household the rebate will be capped at $14,000.
Rebates cannot be claimed for the same upgrades in both programs.
The tax credits available also vary. The Inflation Reduction Act will expand the Energy Efficient Home Improvement Credit which can cover up to 30% of the cost of energy upgrades. There is a cap of $1,200 each year.
