President Joe Biden aims to reduce at least half of the greenhouse gas emissions by 2030. In order to make this possible, they are giving out rebates around U.S. communities through the Inflation Reduction Act. Homes will be able to receive rebates ranging between $2,000 to $4,000 for being energy efficient. The administration is also starting to replace old appliances with newer versions that are more environmentally friendly, like heat humps replacing furnaces in most homes. This plan aims to help Americans lower their energy costs, and make the country less dependent on fossil fuels.
The Inflation Reduction Act is projected to reduce American carbon emissions by 42% by 2050. Addressing climate change has been one of the primary concerns of the administration. Reducing fossil fuel consumption in every home is a step required to address the problem of climate change. Even if a house uses coal, the most carbon-intensive source of energy, if they opt for a cheaper and greener source of energy, their electricity consumption will also go green.
The actual process of acquiring these rebates and credits varies by location due to the state governments responsible for administering the funds. The specifics of applying for and receiving rebates may also vary by location. The federal government will announce the states and tribes who are qualified sometime around spring.
What rebates are being distributed and when is it available?
Multifamily buildings can receive rebates of up to $400,000 while homes could receive retrofits that will range between $2,000 and $4,000. An amount of $2,000 is set to be received by homes that reduced energy by 20% or more, while $4,000 will be given to those who save 35% or more.
Tax Credits for 30% of the energy efficiency include new windows ($600), doors ($500), and heat pumps ($2,000). An amount of $1,200 can be claimed by homeowners back on their taxes. Rebates will be available starting in 2023.