NEW ORLEANS Blog

How the Inflation Reduction Act Can Save You Money

January 20, 2023

What is The Inflation Reduction Act?

In an attempt to save taxpayers money and combat climate change by making energy less wasteful, the federal government passed the Inflation Reduction Act of 2022.  The Inflation Reduction Act of 2022 provides some households with a rebate up to $1,200 annually when improving their home’s energy efficiency with proper insulation and sealing any energy leaks. This is the largest investment in climate and energy in American history, making it the perfect time to take advantage of this opportunity and save some money.

Proper insulation, as it is, can save you up to 30% against your energy bills, but now the government has offered incentives to help you pay for it.

What Products are Eligible? 

• Typical bulk Insulation Products such as; batts, rolls, blow-in fibers, rigid boards, expanding spray, and others. 
• Products that air seal, as long as they come with a Manufacturer's Certification Statement including: weather stripping, spray foam in a can (designed to seal), caulk designed to air seal, and house wrap. 

How Can I Maximize My Tax Credits

In order to save even more money on home upgrades, it would be smart to look into more than one upgrade. Have an old cooling and heating system? Maybe it’s time for you to invest in more efficient HVAC units, but only after checking on your insulation should you do this as they work well together. If you decide to invest in insulation, then you could get a $1,200 tax credit for insulation.  There is also money for other products, but we’re going to stay focused on what we do.  :)  

Tax Credit for Solar Attic Fans

Did you know that a Solar Powered Attic Fan can extend the life of your roof and A/C system? Solar fans have many amazing benefits, and at Koala we highly recommend these to our clients. The Solar Powered Attic Fan is eligible for a 30% (up to $1,200) credit on the purchase price of the fan, installation, and sales tax. In order to receive this credit make sure that you save your invoice of a qualifying Energy Efficiency Upgrade and file IRS Form 5695. 

How Do I Transition to a Green Home

It may be stressful to make big changes within your home, but it will only benefit your health and bank account. Low attic insulation levels, and air leaks cause your air conditioner to work even harder leading to wasted energy. No one wants to waste energy, so call us and we will help you decide which insulation is the best for your home. Not only are you helping the environment, but insulation will also make your home quieter by blocking any outside noises. 

Since so many of the homes in the New Orleans area are older and don’t have adequate insulation.  We are often retrofitting construction with our products to bring homes up to speed when it comes to proper R-Value and efficiency.  Contact us to learn more.  Our insulation audits are free and you may just learn something new about your home efficiency that you didn’t know before.