Consumer Reports: Go green and save green with new tax credits

Looking to upgrade your home with the help of Uncle Sam? The Inflation Reduction Act includes rebates and tax credits for energy-efficient purchases like appliances, electric vehicles, and solar panels. And Consumer Reports says there are other ways to take advantage of these credits by “going green” on your next home improvement project.

With funding from Congress, the Inflation Reduction Act means homeowners can take advantage of up to $14,000 in rebates and tax credits for making energy-efficiency upgrades. How much you’ll be able to get will depend on how much you earn, where you live, and what improvements you make.

CONSUMER REPORTS: Federal Tax Credits & State Rebates

Want to upgrade to a more eco-friendlier stove? A rebate of up to $840 could make it within your budget. Plus, you can receive another $500 to help cover the costs of converting from natural gas or propane to electric.

The largest credits and rebates are available for heat pumps, a high-efficiency system that heats and cools your home in place of a furnace (or boiler) and an air conditioner. (Provided by Consumer Reports)

The largest credits and rebates are available for heat pumps, a high-efficiency system that heats and cools your home in place of a furnace (or boiler) and an air conditioner. You could get as much as $8,000 off.

“While the upfront cost for a heat pump may be higher, these incentives will definitely help. And over the long term, you might actually save money depending upon where you live and what fuel and electricity cost in your area,” said Consumer Reports Home Editor Paul Hope.

And with rebates for upgrading to more efficient exterior doors, windows, and skylights, you’ll be adding value and warmth to your home.

With rebates for upgrading to more efficient exterior doors, windows, and skylights, you'll be adding value and warmth to your home. (Provided by Consumer Reports)

If an electric heat pump doesn’t make sense for your home, you can also qualify for a $300 tax credit with certain Energy Star-certified gas water heaters.