Upgrading your DC home’s performance comes with many benefits, like utility bill savings and improving your comfort. However, many homeowners believe that they can’t afford them. That’s why the Fifth Fuel team is here to help you qualify for several incentives that are currently available to Metro Maryland and Northern Virginia homeowners. With thousands of dollars in tax credits and energy rebates, there’s no better time to get started on making your home more energy efficient and start benefiting now!
Inflation Reduction Act of 2022
The Inflation Reduction Act (IRA) of 2022 makes improving your Maryland home’s energy efficiency more affordable. Within the IRA are several new tax credits and rebates for energy efficient home improvements, and we’ll break them down here and go into how the Fairfax, Virginia and DC areas can benefit from these new energy rebates and tax incentives.
Energy Efficient Home Improvement Tax Credit
Homeowners can now save up to 30% of the total costs of qualifying home improvements with the Energy Efficient Home Improvement Tax Credit. The new federal IRA tax credit can be claimed multiple years in a row, from 2022-2032. To qualify, homeowners can file IRS Form 5695 with their annual tax returns. Here are some of the eligible services that The Fifth Fuel provides:
- Air Sealing & Insulation Services (materials only, $1,200 annual limit)
- Energy Audits ($150 maximum credit)
Inflation Reduction Act Rebates
The Inflation Reduction Act also created the Home Owner Managing Energy Savings (HOMES) and High-Efficiency Electric Homes rebate programs. These two new rebate programs will offer rebates for a variety of energy efficiency home improvements, like insulation, air sealing, and much more.
The funds have been allocated for the rebate programs, but they aren’t available quite yet. Each state will need to determine how and when they plan to implement them. The Fifth Fuel is keeping a close watch on updates regarding the DC, Virginia, and Maryland energy rebates. Our team will provide an update as soon as we have more information about how to qualify for the Inflation Reduction Act rebates.
Virginia Energy Rebate Programs
Virginia Energy Sense has put together a list of all state programs and utility companies that participate in rebates and incentives. These tax credits, rebates and other incentives are designed to help offset the cost of home performance upgrades. The list also includes rebates for new construction of ENERGY STAR manufactured homes.