By Larry Kramer
Thanks to Congress, money will be available to help you purchase electrical devices, from cars to heat pumps to stoves.
One source is already available: tax credits that will apply when you submit your 2023 taxes. The second source, rebates, should be available when you purchase equipment in early 2024.
Why should you want to make changes? It might save you money in the long run, it may improve your home air quality, and it is good for the environment. There will be both rebates and tax credits to cover most electrical devices.
However, new and used purchases of electric vehicles and rooftop solar installations are only available through tax rebates.
Now is the time to investigate and plan. For example, suppose you are considering a heat pump hot water heater to replace your existing gas system that’s a few years old. You rarely know when one is going to fail.
Once it fails, you want a replacement as soon as possible. Most families do not like to bathe in cold water. Therefore, research what is available now and what would be available in the future.
Do you need additional wiring? Will your electric panel support the additional load? Who the available manufacturers and installers are? If it fails and you replace it, what will be the tax credit? What are the rebates, if you wait that long? Which one is better for you—tax credit or rebate?
When you answer these questions, then you will be ready to make the change when there is a systems failure. These answers can be easily obtained through research.
Some examples of tax credits include new electric vehicle ($7,500); used electric vehicle ($4,000); rooftop solar (30% of cost); and weatherization ($1,200).
For new vehicles, determining eligibility can be tricky. It depends on where the car and battery are made and assembled.
Some examples of efficiency rebates include electric stove ($840); electric wiring ($2,500); heat pump air conditioner and heater ($8,000). Note again, rebates are not available until early next year.
There are some income restrictions, but they are still quite generous. Do not trust my numbers; do your homework. To see what is available, paste the following in your browser: cclusa.org/ira-calc. Remember, these are not one-year programs but extend for many years.
Larry Kramer is a 22-year resident of San Juan Capistrano. He is a former mayor and submarine Navy captain.
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