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Looking to cut your home’s energy costs, be more comfortable, increase your home’s resale value or reduce your impact on the environment? Whatever your motivation, the Energy Efficient Home Improvement Credit is a great place to start looking at what rebates and incentives are available to help with energy efficient upgrades and updates. The Energy Efficient Home Improvement Credit is part of the Inflation Reduction Act, which was enacted on Aug. 16, 2022.

One of the most immediate and personal impacts of the Inflation Reduction Act has been the savings it has brought to American households. The law includes federal tax credits to help Americans invest in money-saving energy equipment and energy-efficient upgrades — such as heat pumps, rooftop solar panels and new and used electric vehicles. State rebate programs also will help make additional purchases like electric stoves and certain clothes dryers and water heaters more affordable.

Federal rebates and incentives are available for homeowners and renters.

• Rooftop solar: Tax credits are available now to cover up to 30% of the installation costs — and this federal credit can be paired with additional state incentives. A solar system could save you $300 per year, or $9,000 over the life of the system.
• Heat pumps: These are a super-efficient alternative to furnaces and air conditioners. Tax credits and rebates can cover up to 30% of the costs.
• Home weatherization: Save on home improvements that reduce energy leakage. Tax credits can cover up to 30% of costs for energy efficiency improvements.
• Electric vehicles: Receive up to a $7,500 tax credit for new electric vehicles and $4,000 for used electric vehicles. Additionally, families can save an average of $950 in fuel costs a year.

Learn more about these and additional incentives not listed at saclimateready.org or energy.gov/save.

Additional savings are available through CPS Energy and can be combined with the Energy Efficient Home Improvement Credit for greater savings.

CPS Energy’s Sustainable Tomorrow Energy Plan (STEP) offers rebates on energy-saving home improvements to help your budget and the environment. Learn more at cpsenergy.com/homesavings.

*Rebates and incentives are subject to household eligibility and are also available for businesses and commercial vehicles.

For a full list of all available incentives and rebates, visit https://www.whitehouse.gov/wp-content/uploads/2022/12/Inflation-Reduction-Act-Guidebook.pdf.