by Don Iverson, Schneider Electric
Just in time for tax season, tax breaks for eligible home improvements such as energy-efficient upgrades, new appliance installation, and electrical service improvements can help lighten Americans’ tax burden.
A newly added perk of tax breaks has arrived for certain electrical and appliance upgrades under the Inflation Reduction Act. The credits not only save consumers money, but will help improve electrical safety in the home, according to electrical industry safety experts.
Home renovation offers big opportunities to improve not only a home’s efficiency, but also electrical safety in wiring behind walls. Too many home fires occur each year due to faulty or dated electrical systems and investing in updated electrical wiring and safety technology can help protect homes and families. Each year there are approximately 51,000 home electrical fires responsible for nearly 400 deaths, over 1,000 injuries and $1.5 billion in property damage, according to the National Fire Protection Association.
The new rebates for eligible electrical upgrades include up to*
- $2,500 for electric wiring
- $4,000 for an electric load service center upgrade
When rewiring a home, additional protection should be included such as an arc-fault circuit interrupter (AFCI) device. Part of the National Electrical Code (NEC)® for over 20 years, AFCIs monitor for and detect dangerous arcing and de-energize the circuit when hazardous conditions appear. AFCIs can also be paired with appliances that meet U.S. product safety standards and should be considered when installing new appliances for advanced protection
Certain appliance upgrades are also eligible for tax breaks this year under the Inflation Reduction Act, such as*
- $840 for a stove, cooktop, range, oven, or heat pump clothes dryer
- $1,750 for a heat pump water heater
- $8,000 for a heat pump for space heating or cooling
For more information on AFCI technology and appliance compatibility, please visit www.afcisafety.org, www.afcisafetyreceptacles.org/, or www.nema.org
*Kiplinger: Save More on Green Home Improvements Under the Inflation Reduction Act