Living With Climate Change: Here’s how the Inflation Reduction Act’s rebates and tax credits for heat pumps and solar can lower your energy bill

by | Aug 7, 2022 | Stock Market

It’s not the prettiest, or even most fulfulling, part of upgrading a home. But more energy-efficient heating, cooling, power and water usage can net savings that really adds up for household budgets and for doing right by the planet. Congressional action this weekend and into next week looks to return more incentives, mostly via tax credits and rebates, to the pockets of homeowners who opt for energy-efficient choices, replacing fossil-fuel furnaces, boilers, water heaters and stoves with high-efficiency electric options that can be powered by renewable energy.

Read: Senate passes Democrats’ big healthcare, climate and tax package after marathon session Of course, more of the nation’s electricity grid, currently run on natural gas
along with lingering coal, and expanding wind and solar
will have to be powered by renewable energy for home upgrades to be truly green. But, alternatives are rising in use, and home efficiency has long been considered a good place to start. The bill, a long-fought and greatly-downsized Democrat-crafted spending bill now known as the Inflation Reduction Act, includes rebates or a tax break for qualifying consumers who add efficient heat pumps (which, despite their name, move cold air around too), rooftop solar, electric HVAC and electric water heaters. The IRA was passed Sunday in the Senate and now makes its way to the House next week, where it is expected to be approved by a narrow majority for Democrats in that chamber. The Republicans who have opposed the bill have done so based on disagreements, they say, with the level of spending, but also because some support U.S. oil and gas production on the grounds of cost savings and global security. And Democrats did agree to a future look at expediting environmental approvals for fossil fuels and clean energy. “American families need relief from Democrat policies that attack American energy, send utility bills soaring and drive up prices
at the pump,” said Sen. Barrasso, a Republican of Wyoming who is ranking member on the Senate Committee on Energy and Natural Resources. Climate Nexus, an advocacy group, says a survey has shown 67% of voters support providing tax credits and other incentives to homeowners, landlords and businesses to purchase appliances that don’t use fossil fuels (such as ele …

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