How can you take advantage of the Inflation Act to remodel your home?

How can you take advantage of the Inflation Act to remodel your home?

This new law is like an "$8,000 bank account" for remodeling your home—here's how to take advantage of it.

What if we told you that the federal government created an $8,000 savings account just for you to improve your home and lower your energy bills?

In 2022, Congress passed the Inflation Reduction Act (IRA), the largest measure ever to combat a warming planet.

The law includes a lot of tax breaks and rebates for homeowners to go green and save some cash on their energy bills at the same time.

For example, with an IRA, you can take up to $1,600 in deductions to improve your home's insulation, reducing your monthly energy bill.

And if you want to install an efficient induction cooktop instead of the gases that leak harmful pollution into your home, you can get up to $840 off that, too.

Bill McKibbin, one of the nation's leading environmental journalists, praised the law for its efforts to take the financial burden off improving Americans' homes.

"In essence, the Anti-Inflation Act creates an $8,000 bank account for every American family...if people figure out how to access and use it," McKibbin said during a news conference.

Fortunately, organizations like Rewiring America are helping Americans access these "bank accounts." Rewiring America has an "IRA Savings Calculator" tool on its site that shows you exactly how much you can save.

But financial savings aren't the only reason to make home improvements now, as McKibbin so eloquently points out.

"The good news is that these technologies are better than the ones they replace. Your magnetic induction hob is better than the gas flames you cook on, it's cheaper, and it doesn't give your kids asthma." "A heat pump is a neat alternative to a furnace and is cheaper to use in the long run."

So if you want to make any home improvements or renovations, check to see if you can indulge your new "bank account."