TL/DR –
President Biden’s Investing in America agenda and Inflation Reduction Act have resulted in tax credits that enable families to save on home energy technologies. Other energy efficiency improvements can also offer tax credits up to $1,200 per year. In addition, multiple states are planning to initiate home energy rebate programs funded by the Inflation Reduction Act, which will aid lower- and middle-income families in purchasing and installing energy-efficient appliances, thereby saving on their home energy bills.
Biden-Harris Administration’s Investment in America Cuts Costs for American Households
The Biden administration’s Investing in America initiative is reducing expenses for hardworking US families nationwide. The Inflation Reduction Act, a historic investment in clean energy and climate action, is already lowering costs for clean energy technology installation and reducing housing expenses by increasing monthly energy savings and efficiency. Currently accessible tax credits allow families to save up to 30% on home energy technologies like heat pumps, rooftop solar, and energy efficiency upgrades like insulation. These enhanced tax credits were available for US citizens to claim for the first time on Tax Day in April.
Available Tax Credits and Savings
- Families installing an efficient electric heat pump can receive a tax credit of up to $2,000, saving an average of $500 yearly on energy bills.
- Families making energy efficiency upgrades can receive tax credits worth up to $500 for doors, $600 for windows, $150 for a home energy audit, and 30% off new insulation costs-totaling up to $1,200 per year.
- Families installing rooftop solar, geothermal or battery storage can save up to 30% off installation costs through a tax credit. This offers an average saving of $7,500 off installation and nearly $400 yearly on energy bills.
Moreover, several states are set to launch home energy rebate programs this summer, funded by the Inflation Reduction Act. These programs will aid low- and middle-income families in purchasing and installing cost-saving electric appliances and making energy efficiency improvements to reduce home energy bills. The Department of Energy (DOE) has approved New York’s application, with 14 states having submitted applications for their rebate programs. You can track your state’s progress here.
The Biden administration is also hosting federal partners, nonprofits, consumer lending organizations, and philanthropic organizations for the second time to increase consumer education and outreach regarding the Inflation Reduction Act’s home energy savings tax credits and rebates. Today’s gathering focuses on bridging financial gaps to enable more families to afford home installation of cost-saving clean energy.
Public Support and Resistance
Most Americans support the cost-saving programs put forward by the Biden administration. According to a July 2023 poll, 65% of Americans back tax credits for solar panel installation and 54% support heat pump purchase tax credits. Despite the public approval, Congressional Republicans persist in their efforts to repeal these popular provisions. President Biden remains steadfast in protecting these critical programs that are reducing costs for American families and safeguarding the planet for future generations.
New Federal Resources and Consumer Outreach
Nonprofit organizations are committing to expand their outreach and financing efforts. The federal government has also provided new resources for consumers to learn more about how to save money through the Inflation Reduction Act since the last consumer-centric convening in February. These resources include: a Greenhouse Gas Reduction Fund, a consumer bill of rights, a door hanger detailing tax credits for consumers, and a Low-Income Energy Affordability Data (LEAD) tool.
Today, several nonprofits, universities, and community organizations announced new and expanded efforts to reach consumers across the country about the Inflation Reduction Act’s consumer home energy programs. This includes national public education campaigns, philanthropic support for clean energy work, a one-stop-shop for cost savings that consumers can access online, and a number of technical assistance initiatives funded by the McKnight Foundation.
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