Is the rebate here to stay?
The extremely popular tax credit, which American homeowners claimed $8.4 billion of in 2023, has been extended through 2032 by the Biden administration’s Inflation Reduction Act. But for those planning future upgrades, its lifespan may be threatened by the Trump administration, which has pledged to cut IRA spending.
As Republicans search for ways to fund a $4 trillion tax cut package, the home improvement credit could be at risk. Freezing IRA funds was one of Trump’s first executive orders for this presidency.
“There is a risk in the current budget bill that these credits would be changed or go away completely,” said Haas Energy Institute economist Lucas Davis, who has written on the history and use of the energy credit.
A group of congressional Republicans is siding with Democrats to keep the credit alive. With slim margins of Democrats to Republicans in both the House and Senate, it may still have a fighting chance.
If the federal tax credit does get slashed, check whether your state or local government offers energy rebates. The Department of Energy provides a rebate search tool, and the NC Clean Energy Technology Center maintains an online database of state energy incentives.
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Learn MoreRetrofitting your home
Whether or not you’re able to get the energy tax credit, making energy-efficient upgrades to your home is good for the environment and your wallet.
If you’re like Moritz and live in a house that’s nearly 100 years old, there are several ways to improve energy efficiency without compromising its historic charm.
Insulation: Attic insulation is often a high-priority, yet cost-efficient upgrade for older homes. It can lower heating and cooling costs by 15%, and it’s generally easier and more affordable to install than wall or floor insulation.
Upgrade your furnace or boiler: In older homes, the heating system may also be outdated. Replacing it with a 95% efficiency model could save you up to $525 per year. You might also save $300-800 annually on parts, repair and boiler maintenance by upgrading to a newer system.
Start small: If big-ticket improvements aren’t in your budget right now, start with low-cost changes — like switching to LED lighting, gradually upgrading to ENERGY STAR appliances and using power strips to reduce phantom energy use when electronics are idle.
Energy audits: Many utility companies and local governments offer free or discounted energy audits. These professional evaluations help identify areas of energy waste and provide a plan for increasing efficiency.
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