GRAND RAPIDS Blog

The Inflation Reduction Act and Your Home’s Efficiency | Koala of GR

Making upgrades around your home is always an exciting part of being a homeowner. You get to pick out paint colors, appliances and anything else that helps personalize your home.

However, you also want to make sure you are making the best choice when it comes to the upgrades you choose. You don’t want to sink a bunch of money into a project that won’t pay off in the long run!

The good news is that making energy-efficient upgrades got easier this year. Under the Inflation Reduction Act passed last year, there are provisions that can help homeowners make certain home improvement upgrades at a reduced cost. We explain more about this below.

What Is the Inflation Reduction Act?

The Inflation Reduction Act is a piece of legislation that was passed last year and includes provisions to encourage homeowners to make energy-efficient upgrades to their homes at a reduced cost through tax credits and various rebates. This was passed to help make the financial burden a little less on homeowners while also supporting cleaner energy production across the nation.

The different rebates and the tax credits are available to homeowners everywhere, but each state is rolling out things a little differently and are offering different rebates based on availability and climate. The best way to figure out what project will work for you is to go to the Energy Star Rebate Finder site and find projects that fit your needs.

What Is the Energy Efficient Home Improvement Tax Credit?

The Energy Efficient Home Improvement Tax Credit portion of the Inflation Reduction Act is geared toward helping you reduce your tax bill when you file your 2023 taxes in 2024.

You are able to claim 30% of the cost of your project, up to $1,200 per year. This means that you can choose a project yearly and receive this benefit each time you file your taxes! The tax credit covers many different kinds of projects, including:

• Solar panels
• Solar attic fans
• New insulation
• Upgraded heating and cooling equipment
• Air sealing services

While you can’t claim the money right now, you will reap the benefits of the upgrade as soon as it is completed. Then you will enjoy a lower tax bill in 2024! We can help upgrade your insulation, install a solar attic fan and air seal against any drafts you may have. We can also walk you through the process to ensure you are getting the tax benefits next year.

We can help you take advantage of the Energy Efficient Home Improvement Tax Credit. Contact us today!