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Want your house to be more energy efficient? Rebates and tax breaks will be on the way

In the market for a new heating or air conditioning system? Windows? A stove?

The federal government wants to help you afford those and other energy products and services with rebates and tax breaks.

The big spending bill the House approved Friday and sent to President Joe Biden for his signature has billions of dollars available aimed at encouraging people to buy energy-efficient devices and services.

California already offers help for energy-efficient measures. State officials see big benefits for California residents in the federal legislation and are studying the precise impact.

Climate change activists have been pushing for such measures for years. The bill’s provisions are “by far the most significant steps that Congress has ever taken to spur the widespread deployment of highly-efficient, fully electric and climate pollution free technologies,” said Sen. Martin Heinrich, D-New Mexico, a leader in this effort.

And, said Ari Matusiak, chief executive officer of Rewiring America, it reaches consumers where it matters most.

“It recognizes all the things we use in our daily lives,” he said.

Republicans have criticized the energy plan, calling it too much of a break for middle class homeowners who don’t need such help.

Democrats “want to lavish hundreds of billions of dollars on an issue that exactly three percent of the country says is our biggest problem: Far-left environmental and climate spending,” said Senate Republican Leader Mitch McConnell of Kentucky..

Saving with rebates

There are two tiers of rebates.

To get back half what one qualifies for on a particular item or service, someone would need to earn between 81% and 150% of the area’s median household income. To get a full rebate, their income would have to be 80% or less of the median.

In California, using the Department of Housing and Urban Development’s median income estimate for 2022, 80% of the median family income in the Sacramento area is $81,600 and 150% is $153,000.

Here are some of the rebates that would be available, according to Rewiring America, the Natural Resources Defense Council and Sen. Heinrich’s office:

Heat pump water heater, up to $1.750.

Electric stove, range or cooktop, up to $840.

Electric heat pump clothes dryer, up to $840.

Upgraded electric breaker box, up to $4,000

Upgraded electrical wiring, up to $2,500.

Insulation, ventilation and sealing, up to $1,600.

Tax breaks

Buying and installing heat pumps, insulation or upgrading breaker boxes to accommodate additional electric load, up to 30% of the cost. Deductions are capped at $600 per device or service and up to $1,200 per household per year.

Buying and installing a heat pump water heater or heat pump for their space heating and cooling, up to $2,000.

Windows, up to $600.

Central air conditioning, up to $600.

Solar energy systems, 30% of the cost, including systems installed this year.