Switching to electric vehicles made easier before federal tax incentives run out

In an effort to combat rising energy costs and reduce carbon emissions, electrification advocacy nonprofit Rewiring America has launched the "Save on Better Appliances" campaign. This nationwide initiative aims to help homeowners and renters across the United States lock in energy-saving tax credits before they expire.

The campaign focuses on five or six key purchasing decisions that individuals make only a few times in their lifetime. By providing resources and information about energy-efficient technology, the campaign seeks to empower individuals to make informed decisions that can save them money in the long run.

According to Rewiring America, more than 40% of U.S. energy-related emissions come from home heating, cooling, and power usage. With this in mind, the campaign is a timely intervention, as households can save thousands on federal taxes with tax credits for weatherization improvements, solar panel installations, heat pump heater/air conditioners, home batteries, and heat-pump water heaters.

However, it's important to note that the GOP tax and spending law phased out tax credits for energy-saving appliances, including heat pumps. As a result, households must make their decisions to begin construction of energy-efficient home improvements before the end of the tax year to qualify for the tax credit. The credit typically applies to expenses incurred and work started within that calendar year.

Given the long lead time for quotes and contractor bookings, households need to decide on clean energy projects in the next several weeks to get federal discounts. The administration's anti-renewables agenda is expected to keep power bills climbing, making these tax credits even more valuable.

The tax credits being targeted are the Energy-Efficient Home Improvement Credit (25C) and the Residential Clean Energy Credit (25D). Originally expected to last about a decade, these tax credits will sunset on December 31. In the context of inflation, tariffs, and rising electricity costs, these tax credits are particularly relevant for households looking to reduce their energy bills.

The goal of the campaign is to make sure people have the necessary resources and information about energy-efficient technology. By educating people about technology that can lower their utility bills and make their homes healthier and more comfortable, the campaign aims to empower individuals to make sustainable choices that benefit both their wallets and the environment.