Is your refrigerator running? Seriously — is it running efficiently? Homeowners don’t always realize simple home investments, such as enlisting energy-efficient appliances, can significantly benefit their bottom line.
But buying new appliances can do more than save cash. Some of these upgrades can save the planet, too.
The Inflation Reduction Act of 2022 provides tax credits and point-of-sale rebates that can equal thousands of dollars for homeowners. This includes provisions to help homeowners offset some of the costs associated with converting to newer systems and appliances. For instance, those who replace their aging HVAC systems with high-efficiency HVAC equipment, can be eligible for tax credits from $50 to $300. And that’s on top of the money you save by having the equipment in the first place.
There are, however, a few caveats:
- The replacement must be used by the original homeowner and must be in the principal place of residence.
- Homeowners must use the improvement for a minimum of five years.
- The available tax credit is 30% of the total cost of solar installation and 30% of windows and doors replaced (labor excluded).
- Replacement windows and exterior doors must meet ENERGY STAR requirements.
- The installation must be made from January 1, 2023 through December 31, 2032
- From well-insulated windows and doors to smart home features, here are some easy in effective ways to save money through simple home improvements.
Warm up to the Idea of a Heat Pump
Because it moves heat from one place to another rather than generating it, a heat pump uses less energy to warm your home than a conventional electric or gas system. You can enjoy year-round comfort with a heat pump that’s both energy efficient and built to last, while benefiting from versatile heating, cooling and humidity control throughout your home.
The Inflation Reduction Act also provides tax credits and point-of-sale rebates, meaning you can save thousands of dollars for the installation of high-efficiency HVAC equipment:
- A tax credit of up to 30% of the cost for purchase (between Jan. 1, 2023, and Dec. 31, 2032, and the installation of a heat pump, up to $2,000.
- A new point-of-sale rebate with a $14,000 cap for people earning up to 150% of the area’s median income that applies to heat pumps, heat pump water heaters and heat pump clothes dryers.
- Any combination of heat pumps, heat pump water heaters and biomass stoves/boilers are eligible for an annual efficiency tax credit up to $2,000.
- Want to save even more? When you purchase qualifying equipment through American Standard® Heating and Air Conditioning, you may also receive an instant rebate on purchases up to $600.
Get New Windows and Doors
Properly insulated windows and doors keep the heat inside in winter and outside in summer. As a result, your heating and cooling systems don’t have to work as hard to keep your home at your desired temperature.
Like various HVAC solutions, this is further sweetened by available tax incentives.
Beginning this year, homeowners can earn an energy tax credit of 30% of the cost of new windows, up to a maximum $600. In the case of doors, you’re eligible for a tax credit of $250 per door for up to two doors, for a total tax credit of $500 per taxpayer per year.
Insulate Your Attic
Is your home drafty? Is the temperature inconsistent from room to room? Are your heating and cooling bills through the proverbial roof? Consider insulating your attic.
In a typical home, an attic contains vents to the outside. Insulated with porous material, it allows cold air to enter in the winter and cold air to escape when it’s hot out.
By insulating the upper trusses, you introduce a barrier that markedly reduces the amount of air that enters or escapes a house. The icing on the cake? Insulating your attic may even show an ROI when you sell your home.
Get Smart
Does your body run hot, cold or somewhere in between? Smart thermostats save money by keeping the temperature as low as possible for as long as possible. They turn off the heat and AC more frequently than regular thermostats — but without sacrificing comfort.
You can customize your temperature schedules, too. Many smart thermostats also include features like geofencing. uses the location of your smartphone to automatically adjust the temperature in your home based on whether you’re present or away. They also “learn” your preferences.
Go Tankless
According to Energy.gov, homes that use 41 gallons or less of hot water daily, on demand — or tankless — water heaters save up to 34% in energy consumption compared to conventional storage tank water heaters.
How so? Unlike traditional water heaters, tankless water heaters provide hot water only as needed. As a result, they don’t result in standby energy loss associated with storage water heaters.
Looking for more ways to save money on your heating and cooling bills? Visit American Standard’s Homeowning 01. Info-rich with home essential basics, it’s a resource for making easy repairs, understanding your HVAC system and options, home hacks and so much more. Ready to peruse equipment and leverage the Inflation Reduction Act towards a new HVAC system? Visit American Standard® Heating and Air Conditioning to get started.
- Author: Jennifer Olvera
