Home Electrical Upgrades and The Inflation Reduction Act
On August 16, 2022, the Inflation Reduction Act (the “IRA”) was signed into law. Among its many aims, the IRA, in party, includes numerous investments in climate protection, including tax credits for households to offset energy costs, investments in clean energy production and tax credits aimed at reducing carbon emission. This includes potential incentives for American families to invest in more efficient electrical systems and a pathway to meaningful upgrades for your home. With the potential credits that the IRA provides, you may qualify for home renovations that help you save money on your electric bill.
If you've been waiting for the perfect time to make electrical upgrades to your home, the time is now. Keep reading to learn more about the Inflation Reduction Act and how it can be used to tackle your home improvement projects.
What Is the Inflation Reduction Act?
The Inflation Reduction Act is a U.S. law passed in 2022 that uses federal dollars to fund a range of improvements, including enabling qualifying citizens to upgrade their home's electrical efficiency. In doing so, the measure intends to decrease inflation by activating the market and increasing the flow of capital through the home renovation market. It also intends to reduce carbon emissions by encouraging families to make their homes more efficient.
The law also includes actions that lower the price of prescription drugs and targets a lower federal deficit. For the purposes of this article, we'll focus on how this bill impacts homeowners.
Can the Inflation Reduction Act be Used for Home Improvements?
Yes! One of the biggest goals of the Inflation Reduction Act is to help homeowners make significant upgrades to their homes. Its provisions primarily target renovations to your electrical grid but also include projects related to HVAC, insulation, and other elements that can make your home more energy efficient.
What Electrical Renovations Qualify for the Inflation Reduction Act?
Plenty of home renovations qualify for government assistance under this new law. Upgrades for dryers, stoves, water heaters, and more are all eligible for a rebate. Here are a few of the eligible electrical renovations that we can help you with:
- Electrical Panel Upgrades: For those who qualify, the Inflation Reduction Act covers up to $4,000 to install a new electrical breaker box. A new breaker can make a major difference in your home. A new electrical panel can enable your outlets to support more devices and reduce the likelihood of an overload.
- EV Charger Installations: Did you purchase an electric vehicle but haven't had the time to upgrade the charging system at your home? If so, you're in luck! This bill contains a Clean Vehicle Credit, which covers 30% of your home charger installation, up to $1,000. This credit can also help with purchasing an electric vehicle and knocks up to $7,500 off the price of a new one and up to $4,000 off the price of a used EV.
- Wiring Upgrades: In older homes, existing wiring might be poorly maintained or just too old to properly support modern devices. That's why the Inflation Reduction Act includes an Energy Efficient Home Credit that covers up to $2,500 worth of wiring replacements and renovations in your home.
Do I Qualify for Home Electric Improvement Rebates?
Chances are that you do qualify for assistance with home electric improvements under the Inflation Reduction Act. The only income requirement is that you must make no more than 150% of your community's median income. The benefits also only apply to certain projects. So if you were hoping to renovate your kitchen with money from the IRA, you'll have to keep waiting.
Call Mr. Electric® to Help You Make Electrical Improvements to Your Home
We can all agree that it's nice to make upgrades to your home. With potential assistance from the Inflation Reduction Act, you can make your home more efficient and reduce your future electrical bills in one fell swoop!
If you're planning to take advantage of this boon for homeowners, then Mr. Electric is here to help. Our expert electricians have the skills needed to upgrade your wiring, replace your electrical panel, and install EV chargers. No matter what you need, we can help.