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Citizens Addressing our Changing Climate: How tax credits can help you improve your home

Among its many provisions, the Inflation Reduction Act provides several incentives for homeowners (and renters) to make energy-efficiency improvements to their homes.

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Are you setting intentions for the coming year? Maybe you are interested in improving your health or saving some money or making your community a better place.

You might be surprised to learn that the Inflation Reduction Act, or IRA can help.

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Among its many provisions, the IRA provides several incentives for homeowners (and renters) to make energy-efficiency improvements to their homes. These tax credits are available now, so if you are already making efficiency improvements, you may qualify for tax credits in 2023.

Rewiring America, has developed some great resources. Let’s start with the “Electric Potential” map that shows that Beltrami County residents can access an estimated $128 million in tax credits and rebates over the next 10 years. Most of the economic activity spurred by these improvements will be paid to small businesses in the community, so you can strengthen the local economy.

So how can you access these funds? Rewiring America offers a handy calculator to help you see what is available. The tax credits are available now, starting in 2023. Rebates will be available on an income-qualified basis in 2024 and are capped at $14,000. Look for information on rebates early in 2024.

The following tax credits for electrification and efficiency are available now and continue throughout the life of the IRA:

  • Weatherization — 30% of costs up to $1,200 each year. Weatherization includes steps you can take to reduce the amount of energy required to heat and cool your home, such as air sealing, insulation, and door and window upgrades.
  • Heat Pump — 30% up to a maximum of $2,000.  Heat pumps are ultra-efficient heating and cooling machines. Choose either a whole house system or the smaller mini-split. Both Otter Tail Power Company and Beltrami Electric Cooperative offer rebates as well, to add to your savings.
  • Upgrades to electrical panel — 30% up to $600. Whether you’re electrifying one appliance or all of them, you’ll likely need an electrician to pre-wire your home. Plan ahead and have the work done.
  • Solar panels — 30% of the cost, uncapped. Rooftop solar uses solar photovoltaic (PV) panels to turn sunlight into electricity. PV panels can be installed on your roof or in your yard.
  • Battery Storage — 30% of the cost, uncapped. A battery storage system lets you store energy from the power grid or from rooftop solar for use in your home.
  • Electric Vehicles — $7,500 for new and $4,000 for used cars. Electric vehicles are very efficient and easy to operate. There are a lot of details to the tax credits, so check out more information. The IRS offers this guidance at
  • Level 2 Vehicle Charger — $1,000. The tax credit is available in rural areas that meet median income requirements.  Again, local utilities offer rebates for charges tied to load control. 
  • Heat Pump Water Heater — 30% up to $2,000. Heat pump water heaters are three to four times more efficient than traditional water heaters and work in all climates.

Let the planning begin! Rewiring America just launched its planning tool — the Personal Energy Planner. Navigate to to get started. Be sure to check with your utility to see what rebates they offer — in addition to the IRA tax credits. Consult your tax advisor to help maximize the benefits of these tax credits.

Linda Kingery of Bemidji is a member of the Citizens' Climate Lobby organization. For more information, visit

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