Renters
Renters can play a part in the energy transition. When you are looking for a rental ask questions about the energy efficiency of the appliances and building. Tell landlords, property managers and neighbors about incentives and programs that increase energy efficiency, lower indoor air pollution, and allow access to lower cost solar energy and to EV chargers. These improvements benefit everyone. They can be selling points for landlords; several New Mexico apartment complexes advertise EV chargers to attract tenants.
While the Inflation Reduction Act is aimed primarily at homeowners, there are some benefits for renters as well.
Rebates
There are a few rebates for portable items you can take with you. When you enter your information into Rewiring America’s IRA benefits calculator, be sure to put “renter” in the homeowner status menu bar. Depending on your income, you may qualify for federal point-of-sale rebates for a heat pump clothes dryer and an electric or induction hot plate or cooktop when they become available at the end of 2023. Window-unit heat pumps are expected to become eligible in 2024/2025, according to Rewiring America. Electrify Now’s fact sheet on Portable Heat Pumps.
If you pay the utility bill directly, also check with your electricity provider, including rural electric coops, for additional rebates. See more incentives for renters and The Switch is On‘s Kitchens Electrification for Renters.
Tax credits.
There are incentives for renters with incomes high enough to owe federal income tax. Nonrefundable tax credits will lower the price of new (up to $7,500) and used (up to $4,000) electric vehicles. (Check out suggestions for renters in Electric Vehicles and EV Chargers and in Resources for Low-Income Residents about driving electric and rebates for chargers). Nonrefundable means you can’t get back more on the credit than you owe in taxes. If you do not owe any taxes, you will not get a credit.
Renters, and not landlords, may obtain the following nonrefundable tax credits from 2023-2032 for energy efficiency upgrades and appliances, according to this IRS fact sheet. The credits are 30% of the costs minus any rebates (excluding state incentives). If your income is high enough to get the credit, it might be worth talking to your landlord about splitting the cost or lowering the rent in return for improvements to the property. Click on the links below for the fine print.
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- Energy Efficient Home Improvement Credit for home energy audits, qualified heat pumps, heat pump water heaters and other appliances, and windows, doors, insulation and other weatherization measures.
- Residential Clean Energy Property Credit for 30% of equipment and installation costs of Solar Panels, Solar Water Heaters, Geothermal Heat Pumps, and Battery Storage.
Renewable Energy.
Even as a renter with no solar panels on your roof, your power can come from clean energy sources. Sign up for a green power plan with your electricity provider such as PNM’s Sky Blue program (this costs more). Or subscribe to a Community Solar project when they come on line (this should cost less).
Landlords and Builders
Please consult your tax adviser for complete information on rebates, tax credits and tax deductions you may qualify for. 350NM is not responsible for the accuracy of the tax information presented on our website.
Watch landlord Lincoln Eccles and BlocPower CEO Donnel Baird discuss why and how they install heat pumps in apartment buildings. Baird wants to turn buildings into Teslas.