Upgrading your home’s performance can provide several comfort and energy efficiency benefits, like lower utility bills and more consistent temperatures. As an investment in your home, these home improvements will pay for themselves in energy savings and last for years, but that doesn’t mean they come without a cost.
At Responsible House, we want to help our Central Virginia neighbors find ways to save on their home performance upgrades, which is why we stay up to date with the latest tax credits, rebates, and other incentives available in Waynesboro, Charlottesville, and surrounding areas.
Inflation Reduction Act Tax Credits
The Inflation Reduction Act (IRA) is a federal initiative to make energy-efficient home upgrades more affordable. Within the IRA is a revitalized federal tax credit program, known as the Energy Efficient Home Improvement Tax Credit, which offers savings of up to 30% of the cost of qualifying home upgrades.
The Energy Efficient Home Improvement Tax Credit is available for homeowners to claim on their annual tax returns until 2032 and covers the following home services:
- Up to $1,200 for insulation & air sealing (labor not included)
- Up to $150 for energy audits
How Tax Credits Work
Tax credits reduce the amount of either federal or state taxes you owe for a given year. This incentive is not instant cash in your pocket, as with a rebate, but is credited back to you when you file your tax returns.
In the case of the IRA insulation tax credits, your federal tax liability will be reduced by 30% of the cost of insulation and air-sealing for the year you made the upgrades to your home. This federal tax credit requires you to have a taxable income, that you own your home, and a completed Form 5695 with your filing. Responsible House recommends that you reach out to your tax professional for more information on how to receive this incentive.
Inflation Reduction Act Rebates
The IRA also introduced two new rebate programs to help make energy-efficient and electrification home upgrades more affordable, however, they aren’t available just yet. In order to get these rebates to consumers, the state of Virginia needs to first follow strict guidelines from the federal government to get the programs up and running.
Homeowners can only receive rebates from one of the two programs, but either one can be combined with the IRA federal tax credits. The team at Responsible House is keeping a close eye on these rebate programs and will provide updates as soon as we know when they will be available to Charlottesville, Waynesboro, and elsewhere in Virginia.
High-Efficiency Electric Home Rebate (HEEHRA) Program
Homeowners can be eligible for up to $1,600 in insulation and weatherization rebates from the HEEHRA rebate program, which will be implemented by Virginia Energy. Low-income households are eligible for rebates up to 100% of the cost of home upgrades, while moderate-income households will receive 50% of the cost covered.
Home Owner Managing Energy Savings (HOMES) Rebate Program
The HOMES rebate program is based on the energy savings your home upgrades provide, with higher rebates for more savings. Low-income households will be eligible to receive higher rebate amounts covering up to 80% of the project cost, up to $8,000.
Local Utility Rebates
Utility companies throughout Waynesboro, Charlottesville, and surrounding areas also offer rebates on energy-efficient home improvements. Incentives programs fluctuate on a regular basis, but you can always reach out to the team at Responsible House to get the latest information.
Charlottesville Gas
Charlottesville Gas customers can get $300 in attic insulation rebates, see more information here.
Upgrade Your Home With Responsible House
When it comes to investing in your comfort, health, and energy efficiency, Responsible House has extensive knowledge on how to provide long-lasting and reliable home improvements. As building scientists, we view your whole home as a system, with each component contributing to its overall performance. This science-based approach allows us to take the guesswork out of insulation, air sealing, and other home upgrades.