How To Cash In On Billions In Green Home Improvement Tax Credits And Rebates

Abstract

How To Cash In On Billions In Green Home Improvement Tax Credits And Rebates The new Inflation Reduction Act aims to arrest climate change by providing incentives for everything from solar panels to heat pumps to new windows to electric stoves. While the credits for buyers of electric vehicles have grabbed much of the attention, their cost pales in comparison to the tens of billions in tax credits and rebates for homeowners investing in everything from solar panels to heat pumps to new windows to electric stoves. Solar Panels & Battery Storage: 30% Tax Credit, Uncapped Headlining the bill's home-upgrade provisions is an increase and extension of the tax credit for solar energy systems, which was set to decline from 26% to 22% next year before expiring in 2024. The credit is available for both systems you buy for cash and those you buy with financing, but not for systems installed and still owned by third-party companies-businesses, not homeowners, get to claim a credit for those leased systems. Geothermal Heating: 30% Tax Credit, Uncapped There's now also an uncapped 30% tax credit to install geothermal heating, which transfers warmth from the ground into your home for space and water heating-instead of producing it through the combustion of fossil fuels. Like the credit for solar systems, this credit's sticking around until at least 2032. Heat Pumps, Doors, Windows and More: 30% Tax Credit, Up to $3,200 For homeowners looking to make less dramatic adjustments, the IRA provides a 30% credit for a slew of products including windows, insulation and heat pumps, which are an energy-efficient alternative to furnaces and air conditioners.