NORTH HOUSTON Blog

Tips for Saving Money Into 2024 With the Inflation Reduction Act | Koa

Is your tax refund from this past year burning a hole in your pocket? Are you looking for a smart way to spend it that will have a great return on investment? Look no further than an insulation upgrade or air sealing job for your home.

Our team can help upgrade your insulation, but we can also help you navigate the ins and outs of the benefits associated with the Inflation Reduction Act to save you even more money in the process.

What Is the Inflation Reduction Act? As a refresher, the Inflation Reduction Act was passed back in 2022 with one goal of helping Americans across the country make smart upgrades for their home at a reduced cost. These upgrades center around energy efficiency and can range from investing in a dishwasher that uses less water during a cycle to adding spray foam insulation to your attic.

You have the ability to utilize this benefit every year through a tax credit. The credit allows you to claim up to 30% of your project, up to $1,200, on your 2024 taxes. That will save you some serious money later, but the upgrades will start to save you money right away when your energy bills start dropping as a result. It’s a win-win situation for you!

What About Commercial Properties?

The Inflation Reduction Act also offers benefits for commercial property owners, but they aren’t exactly the same as for single family homeowners. The High Energy Efficiency Rebate program exists for single as well as multi-family properties, so if you own a multi-unit building, your property may qualify for certain rebates based on any energy-efficient upgrades that you make. The Inflation Reduction Act also allows you to deduct a certain amount of square footage of your properties based on the upgrades you make. This formula is based on how much energy you are predicted to save over the course of a typical year, so you will have to sit down and do a bit of calculating and research to see what is the best path forward for your properties.

Can I Still Take Advantage of Other Rebates?

Yes! If you aren’t familiar with rebates, they operate as a secure cash-back option when it comes to saving money. You make the purchase and then submit receipts or proof of purchase to get some of your money back from the original purchase.

There are all kinds of rebates out there that you can stack with your tax credit to help you save as much money as possible. However, they do vary state by state or even by the time of year, so make sure you are making your project plans in the right timeline to take advantage of them. Check out these two websites for the most accurate rebate information: · The Database of State Incentives for Renewables & Efficiency · Energy Star If you decide that new insulation, air sealing or a new attic fan is right for you this year, call Koala Insulation of North Houston and we will take care of you.