About the Inflation Reduction Act of 2022 | Anderson Insulation
Lowering Energy Costs
The Department of Energy (DOE) launched the Energy Savings Hub to help consumers, renters, and property owners find ways to save money on energy costs by tapping into the incentives offered by this Inflation Reduction Act. Some of the different benefits include:
- Florida Power & Light will refund its customers ~$400M in savings as a result of the Inflation Reduction Act’s Production Tax Credit for solar energy.
- Homeowners who install an electric heat pump for heating and cooling can receive a tax credit of up to $2,000 and save an average of $500 yearly on energy bills.
- Families who install rooftop solar or battery storage in their homes can save up to 30% of the cost of the installation via a tax credit and save nearly $400 yearly on energy bills.
- Property owners who make energy efficiency improvements can receive tax credits – up to $500 for doors, $600 for windows, $150 for a home energy audit, and up to 30% off the cost of new insulation—a total of up to $1,200 per year in tax credits!
How Can You Use The Inflation Reduction Act?
If you are a homeowner, landlord, contractor, or even just a property owner for a business – this inflation reduction act provides major incentives to help make your property more energy efficient – both for you and our climate. Here are a few days you can use the Inflation Reduction Act to improve your home:
Assess Your Energy Needs: Many homeowners want to upgrade to a greener, more efficient home but don’t know where to start. You can shave 30% off your energy audit cost, up to $150, if you hire a qualifying inspector through the Reduction Act’s tax credit for energy audits.
Upgrade Heating and Cooling Systems: The Energy Efficient Home Improvement Credit covers energy-efficient insulation, exterior windows and doors, home energy audits, and installing heat pumps – up to a maximum of $1,200 for most projects.
Discounted Energy-Efficient Appliances: If you are within a low-to-mium-income bracket, you could qualify for the High-Efficiency Electric Home Rebate Act. Under this program, you could receive up to $14,000 in point-of-sale consumer discounts for a wide range of energy-efficient appliances and projects.
Claim your tax credit- it’s easy!
1 – If you are upgrading to energy-efficient appliances or home improvements, when you purchase the product ensure that it is from a manufacturer that meets the Inflation Reduction Act requirements
2 – After purchasing any services or appliances, make sure to keep track of product ID numbers, invoices, etc.
3 – Fill out the necessary tax form when you complete your income taxes (IRS Form 5695) and include any relevant product ID numbers, invoices, etc.