Biden's inflation law offers up to $14,000 for home upgrades. See how to qualify.

President Biden’s Inflation Reduction Act takes climate change, helping Americans reduce your carbon footprint. A key element in tha...

President Biden’s Inflation Reduction Act takes climate change, helping Americans reduce your carbon footprint. A key element in that push is offering up to $14,000 in discounts and tax credits to people to make their homes more energy efficient.

These benefits can be used to reduce the cost of home upgrades, from installing heat pumps to purchasing new electrical appliances such as stoves and dryers. About 40% of carbon emissions come from buildings, so these incentives could help the U.S. meet its goal of reducing fossil fuel emissions, said Lauren Urbanek, senior energy policy advocate at the Natural Resources Defense League, non-profit.

“It gives people some very concrete and generous incentives to do this, both in the form of tax credits and direct cash rebates,” Urbanek told CBS MoneyWatch. “This is the largest federal investment in buildings ever made, at least one that is climate-specific.”

Here’s what to know about incentives.

What discounts can I get?

There are two separate discount programs according to the NRDC.

  • The CASAS discount program: This provides more than $4 billion to states to help residents make their entire home more energy efficient. The program offers discounts based on the energy savings your upgraded home will achieve. For example, homeowners who make changes that reduce energy use by at least 35% can receive up to $4,000 in discounts. This amount is doubled for low- and middle-income families, who can receive up to $8,000 in discounts.
  • High Efficiency Electric Residential Rebates Act (HEEHRA): This offers discounts for low- and middle-income families to electrify their homes, such as installing heat pumps or electric clothes dryers. The per family discount is limited to $14,000, and families cannot receive two discounts for the same upgrade. For example, if they claim a HOMES rebate program for a heat pump, they cannot get a rebate through HEEHRA either.

What types of updates are covered?

The HOMES Rebate program would cover upgrades, from solar panels to new windows, that would help your home become more energy efficient.

The HEEHRA program designates discounts for specific device purchases and other upgrades. One of the most attractive discounts is a provision that offers up to $8,000 for heat pumps, which, despite their name, provide air conditioning and heating.

When it comes to energy consumption, these devices are often better alternatives to ovens because they rely on electricity rather than gas or oil to heat a home. Compared with electric resistance heating like baseboard heaters, they can reduce electricity usage by about 50%, according to to the Department of Energy.

Variation from $4,000 to over $7,000 each, heat pumps can cost a good penny. Both discount programs can help offset some or even all of the cost of these devices for many consumers.

Here are the discount thresholds for other upgrades made through the HEEHRA program:

  • $1,750 for a heat pump water heater
  • $8,000 for a heat pump for space heating and cooling
  • $840 for electric stoves, cooktops, stoves, ovens, and electric heat pump clothes dryers
  • $4,000 for an electric charge service center upgrade
  • $1,600 for insulation, air sealing, and ventilation
  • $2,500 for electrical wiring

There is a $14,000 limit on the dollar value of discounts offered under the program. For example, low-income homeowners can get up to 100% of electrification projects covered – up to $14,000 in discounts – while middle-income consumers can get up to 50% of their costs covered by discounts (also up to this value). limit of $14,000).

What types of tax credits can I get?

Tax credits are different from discounts because consumers receive them when they file their taxes. Discounts, on the other hand, are usually applied when someone purchases an item. HEEHRA discounts must be available at the point of sale, such as when a consumer purchases a heat pump from a home improvement store.

The Inflation Reduction Act expands a homeowner efficiency tax credit called the Energy Efficient Home Improvement Credit. This covers up to 30% of the cost of power upgrades, capped at $1,200 per year.

Portable power solutions are creating a sustainable energy self-sufficient future for consumers.


This tax credit was previously available to homeowners, but it was a lifetime credit, meaning you could only claim it once. But the IRA makes the credit an annual incentive, meaning homeowners can claim the credit to upgrade windows one year and buy a heat pump the next.

How can I apply for these programs?

You can’t claim the discounts or tax credits just yet, noted Urbanek.

“We probably still have a few months left for the programs to be live,” she said, adding that the HOMES discount program will be operated by the states, which are likely working on implementing their plans now.

Likewise, point-of-sale discounts are not yet available to consumers, but stores should have details later this year, according to to market the Clean Technica publication.

What should I do now to prepare myself?

There are two steps homeowners can take right now to prepare, experts say. First, schedule an energy audit of your home, which typically costs around $400 and can offer guidance on how to make your home more efficient, according to to the Home Counselor.

Second, start talking to contractors to line them up for projects when discounts and tax credit are available, Urbanek noted.

“Educating yourself about the types of equipment and what you might need for your own home can give people an idea of ​​what to do once it becomes available,” she said.

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Newsrust - US Top News: Biden's inflation law offers up to $14,000 for home upgrades. See how to qualify.
Biden's inflation law offers up to $14,000 for home upgrades. See how to qualify.
Newsrust - US Top News
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