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Americans can receive one-time rebate between $4,000 to $8,000 - see the switch to get money back

MILLIONS of Americans could see a one-time rebate worth up to $8,000 for switching appliances in their home.

The payments are part of a $150million federal infrastructure rebate courtesy of the Biden administration.

The funds are intended to help Americans replace their old appliances with more energy-efficient appliances.

The landmark Inflation Reduction Act law ultimately aims to provide lower energy costs by allowing consumers to claim the same or varying credits each year if new products are purchased.

One of the most expensive replacements is a furnace. That cost alone can vary between $5,000 and $20,000.

However, under the Inflation Reduction Act, Americans who opt to replace furnaces with heat pumps would be eligible for the rebate.

Read more about rebates

Each household can earn $4,000 for energy-efficient switches, and multifamily buildings could qualify for up to $400,000.

To grab some of the credits, taxpayers must complete Form 5695, Residential Energy Credits.

Just keep in mind you may face hefty upfront costs for the new appliances.

WHO QUALIFIES

For the federal home electrification program, you qualify for the extra payment as long as your income is 80 to 150 percent or lower of the median income in your area.

Most read in Money

If it's between 80 to 150 percent, the rebate will cover 50 percent of the cost to electrify your home.

If lower than that, the entire cost will be covered, with a cap of $14,000 per household.

The full rundown includes:

  • $8,000 for heat pumps
  • $4,000 for panel/service upgrades
  • $1,750 for heat pump water heaters

If your switch reduces energy use by 20 percent, you’re eligible for $2,000, while those who reduce their energy by 35 percent or more will earn $4,000.

Heat pumps, panel upgrades and heat pump water heaters are all some of the items covered under the rebate.

Likewise, those who make the transition to electric stoves, clothes dryers and insulation could also qualify.

OTHER HELP AVAILABLE

Anyone who installs solar panels in their home could also receive some cash help.

For 2023, households may grab tax credits covering 30 percent of the costs they incur by installing rooftop solar.

This credit applies to solar systems that are paired with battery storage as well as standalone battery storage installed without solar.

Tax credits will also be issued to those who purchase an electric vehicle.

For 2023, income-qualified households can receive a tax credit of up to $7,500 for new electric vehicles.

Like last year, vehicles must be assembled in North America.

Additionally, they must have a manufacturer’s suggested retail price of $80,000 or less for pickup trucks, vans and sport utility vehicles and $55,000 or less for other vehicles, including sedans.

For previously-owned electric vehicles, income-qualified households can access a tax credit of up to $4,000.

They must be at least two years old and cost $25,000 or less.

Read More on The US Sun

The state of Alabama is considering offering $500 rebates to residents.

Also, another state is offering checks up to $1,500 throughout this month.

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Reinaldo Massengill

Update: 2024-09-10