CHATTANOOGA Blog

Take Advantage of the Inflation Reduction Act in 2023

We are all looking for ways to save money right now, and it might actually be a little easier to do so in 2023! Legislation passed last year called the “Inflation Reduction Act” can help you take steps toward a more energy-efficient home while also saving you money along the way.

Upgrading your home’s insulation or adding in energy-efficient appliances or materials can qualify you for a tax credit or a direct rebate this year. Check out the benefits of this great opportunity for homeowners in 2023 and learn how you can qualify your project below.

What Does the Energy Efficient Home Improvement Credit do?

A more energy-efficient home increases your return on investment when you eventually sell your house. Energy efficiency is becoming more popular and important in the housing market, so choosing these types of projects for your home in 2023 will only be beneficial for you in the long-run!

The Energy Efficient Home Improvement Credit allows for you to claim up to 30% of your project’s cost, up to $1,200, in 2023. This can include swapping out old appliances for the newer, more energy-efficient version, or adding in upgrades like new insulation or air sealing areas of your home. You claim this credit for your 2023 taxes (the ones you file next year), so now is a great time to start thinking of the projects that you can do this year.

What Is the HOMES Rebate Program?

This part of the Inflation Reduction Act encourages households to make environmentally friendly choices when it comes to renovations and appliances by offering money back on certain projects. You earn cash back based on how much money you are projected to save with the energy-efficient upgrades you make.

There is a formula that is used to determine the specific amount for each project, but the limit for the rebate is $1,600. The more that you are projected to save over the lifetime of the upgrade you make, the more money you will be able to receive back!

This program also includes insulation, air sealing and ventilation services, so give us a call this year and we can help you get the rebate you deserve.

How Can I Make Sure My Project Qualifies?

This is a state-specific legislation, so in order to find out if your project qualifies for any rebates, go to the Energy Star site and type in your zip code. Then you just filter by insulation or sealing products on the left-hand side and see what benefits you can receive!

Don’t forget to take advantage of the other incentives available to you in the Chattanooga area. The Database of State Incentives for Renewables & Efficiency is a great resource to check out the other opportunities for rebates and credits on all kinds of energy-efficient appliances and projects. Just follow the prompts by selecting Tennessee and then filter under the technology section to find the energy-efficient offers for our area.

If you need help determining what type of project is right for you in 2023, give us a call at Koala Insulation of Chattanooga.