Image: @IRSenEspanol in X.
➡️ By Johani Carolina Ponce
The Inflation Reduction Law President Biden’s presidency not only seeks to combat climate change, but also to provide Americans with the opportunity to reduce their carbon footprint through financial incentives to improve energy efficiency in their homes. This is a key time to take advantage of tax refunds and credits before the change in Administration and the close of fiscal year 2024, which will take place on December 31.
Tax Rebates and Credits for Energy Improvements
The owners may qualify for up to $14,000 in tax rebates and credits, which can cover a wide range of energy improvements, from installing heat pumps to purchasing efficient electric appliances like stoves and dryers. This not only helps reduce energy consumption and carbon emissions, but can also help households save on costs in the long term.
What types of refunds and credits are there?
- Credit for energy efficient home improvements: This credit covers up to 30% of costs of energy improvements, with an annual limit of $1,200. Eligible improvements include installing insulation, efficient windows, and more efficient heating and cooling systems.
- HOMES Rebate Program: Through this program, homeowners can receive rebates for making changes to their home that reduce energy consumption by at least 35%. Low- and middle-income households may qualify for up to $8,000 in rebates, while higher-income households can receive up to $4,000.
- Programa HEEHRA (High-Efficiency Electric Home Rebate Act): This program offers rebates specifically for homes that want to electrify their systems. For example, the installation of heat pumps or electric dryers may qualify for a rebate of up to $14,000depending on household income.
What improvements are covered?
- heat pumps: An efficient device that offers both heating and cooling. They can help reduce electricity use by up to 50% compared to traditional heaters.
- electrical appliances: Replacing gas stoves with electric stoves, for example, may qualify for a rebate of up to $840.
- Improvements in electrical infrastructure: You can obtain up to $4,000 to upgrade the home’s electrical service, ensuring it is ready for new technologies.
- Insulation and ventilation: Households can receive up to $1,600 to improve insulation and reduce energy loss.
Please note that it is advisable to make improvements and claims before the end of the fiscal year.
If you want more information on how to qualify for these benefits and what improvements to make, you can consult the following link: https://www.irs.gov/es/credits-deductions/energy-efficient-home-improvement-credit.
