Are You Taking Advantage of Efficiency Incentives?
By Jennifer Ailor, OS Climate Change Committee Chair One of the most effective ways for a homeowner to mitigate climate change is through energy efficiency. Efficiency is another form of “fuel” that electric utilities often count because it replaces the coal, gas, oil, etc. that otherwise would have been used to generate electricity for inefficient appliances and equipment. Utilities often offer rebates and other incentives for customers to purchase more efficient appliances and equipment. States sometimes offer incentives as well. Finally, the federal government further sweetens the impact of efficiency by offering tax credits. The Inflation Reduction Act of 2022 modified (for the better) federal residential energy-efficiency tax credits through Dec. 31, 2032.They apply to energy-efficiency improvements in primary residences owned and lived in by the taxpayer (that’s you). The credits apply to all kinds of appliances and equipment, including heating, cooling and water heating equipment. Before 2023, the maximum tax credit for all efficiency improvements was $500. Now, that lifetime limit per taxpayer has been replaced by an annual limit of $1,200. That’s a huge incentive to invest in energy efficiency in your home. The tax credit is now 30 percent of [...]