What does the new climate bill mean for your residential home?

Have you been thinking about investing in solar panels, a more efficient furnace, attic insulation, or new windows for your home? If you’re like me, these seem like great ideas, but the price of doing so elicits sticker shock. Well, now may be your chance to realize those dreams for a fraction of the cost. The Inflation Reduction Act, which was signed by President Biden on August 16^th, has a host of financial incentives for consumers who want to save money and reduce their environmental impact to benefit themselves and society.

These include:

• $7,500 tax credit for the purchase of new electric vehicles and $4,000 for used
• 30% tax credit for renewable energy home projects, including installation of battery storage systems
• Up to $2,000 a year for home improvements centered around energy efficiency
• Up to $8,000 in home-energy rebates through grants given to states
• Up to $14,000 in rebates for efficient appliances
• Ability to use both the tax credits and rebates
• Direct savings from lower heating and energy bills

There is a tax liability required to use the credit, but thankfully the tax credits can be used in future years if not applicable to the existing tax liability, making it even more attractive to consumers!