Part 3: Think long term

Commentary by Jim Grimes

purchase an EV.

• Before you switch from a gas furnace to an electric heat pump, weatherize your home.

Environment

If you’ve read the first two articles in this series about reducing your household’s carbon footprint by electrifying everything, perhaps you’re interested in getting started. Are you ready to turn your interest into reality? If so, you have 10 years, until 2032, to take advantage of the IRA funds available to you. This calls for a multi-year plan.

When developing your multi-year plan, consider:

• The distinction between tax credits and rebates. Tax credits are recouped when you file your taxes. Point-of-sale rebates reduce the purchase price.

• Tax credits for rooftop solar, battery storage and geothermal heating are 30 percent and are not capped at a specific dollar amount. Plus households can roll over unused tax credits year over year for these upgrades.

• Electric vehicles are eligible for a tax credit in 2023 but will qualify for a point-of-sale rebate in 2024, so you might consider waiting until 2024 to

• The rules for point-of-sale rebates related to residential electrification upgrades won’t be released by state energy offices until the end of 2023, so consider waiting until 2024 to use these rebates if you qualify. Rewiring America provides several case studies in its publication “Go Electric” IRA Guide (rewiringamerica.org/IRAguide), where multi-year plans are developed for a variety of situations, including homeowners with low, moderate and high-incomes, and renters. This is a tremendously helpful guide when establishing your plan to electrify everything and cutting your household car bon footprint in half by 2030.