Consumer Reports: Going green could save you some green with next major purchase

PHILADELPHIA -- If you have been thinking of renovating your home or buying a new car in the New Year, you might want to go green to save some green.

Updating to more eco-friendly options could earn you some cash back.

The Inflation Reduction Act includes rebates and tax credits for energy-efficient purchases, like appliances, electric vehicles and solar panels.

And those aren't the only ways to take advantage of the government's offers.

During a home renovation, Consumer Reports' Paul Hope tried to make environmentally conscious choices. Switching from a gas stove to an electric range was an easy one.

"I've always preferred cooking on a gas range, but I knew electric and induction ranges had gotten a lot better over the years and that they're way better for the environment," Hope said.

With funding from Congress, the Inflation Reduction Act means homeowners can take advantage of up to $14,000 in rebates and tax credits for making energy-efficiency upgrades.

How much you'll be able to get will depend on how much you earn, where you live and what improvements you make.

Want to upgrade to a more eco-friendlier stove, like Paul's? A rebate of up to $840 could make it within your budget. Plus, you can receive another $500 to help cover the costs of converting from natural gas or propane to electric.

The largest credits and rebates are available for heat pumps, a high-efficiency system that heats and cools your home in place of a furnace (or boiler) and an air conditioner - as much as $8,000.

"While the upfront cost for a heat pump may be higher, these incentives will definitely help. And over the long term, you might actually save money depending upon where you live and what fuel and electricity cost in your area," Hope said.

And with rebates for upgrading to more efficient exterior doors, windows and skylights, you'll be adding value and warmth to your home.

If an electric heat pump doesn't make sense for your home, you can also qualify for a $300 tax credit with certain Energy Star-certified gas water heaters.