Kitchen remodeling can be costly and daunting, but the good news is that there are free government programs that can help cut costs.
These federal benefits incentivize homeowners to save energy, protect the environment, and improve accessibility for those with disabilities.
Kitchen appliances consume considerable energy, while cabinets can be hard to reach for people who use wheelchairs.
So, look for cost-saving rebates, tax refunds, and programs that provide free energy-efficiency upgrades and the wiring needed to run the equipment.
Apply for these programs as early as possible and check eligibility requirements and availability; some are brand new.
Kitchen Appliance Programs
The federal government supports programs that help lower kitchen remodeling costs associated with appliance upgrades: refrigerators, stoves, and dishwashers often qualify.
Government-sponsored appliance replacement incentives help save energy and protect the environment through at least three initiatives, as illustrated below.
Refrigerators
Refrigerators are typically the most expensive kitchen appliances to upgrade during a makeover. They consume costly electricity because they run twenty-four hours a day, seven days a week.
The Weatherization Assistance Program (WAP) is the primary federal initiative offering free refrigerators to low-income families. You can apply for WAP through a designated contractor in your local area. The contractor will perform a home energy audit to determine eligibility.
Stoves
Stoves, ovens, or ranges are another expensive group of kitchen appliances to update during a renovation. However, the government no longer favors cooking with natural gas, opening additional opportunities to cut costs.
Electric Stoves
The High-Efficiency Electric Home Rebate (HEEHR) offers up to $840 off the cost of installing electric stoves and cooktops. However, you may have to wait to take advantage of this benefit.
The federal government enabled this program by passing the Inflation Reduction Act. However, at the time of publication, the states have yet to establish the point-of-sale capabilities set forth under the new law.
Biomass Stoves
The Energy Efficiency Home Improvement Credit (EEHIC) reduces the installation cost of qualified biomass stoves using wood chips, pellets, or logs instead of natural gas.
The EEHIC provides an annual credit of $2,000 toward purchasing a biomass stove. Of course, you must have at least this much tax liability to take advantage of this credit, which is non-refundable.
Dishwashers
Dishwashers are another pricey kitchen appliance to update during a makeover project. Fortunately, two additional government programs might help lower costs modestly.
Free water heater programs can lower the costs of supplying the dishwasher with what it needs to remove grease and food particles from your cups, silverware, and plates. Both WAP and HEEHR might assist with this improvement.
Energy Star Rebates offers money back on the purchase of new high-efficiency dishwashers. You might also find additional savings on smaller kitchen items such as microwaves and food processors.
Kitchen Cabinet Programs
Homeowners with disabilities might qualify for free programs, reducing the costs of replacing kitchen cabinets during a renovation. The government supports projects improving accessibility for people with mobility challenges.
IRS
The Internal Revenue Service (IRS) supports programs to cut kitchen cabinet costs for disabled people. The IRS permits homeowners to deduct reasonable charges to accommodate a home for a disabled condition as a medical expense.
Lowering kitchen cabinets and equipment is a qualifying medical expense in this context, giving homeowners with a disabling medical condition three ways to take advantage.
- Deduct as a qualifying medical expense if meeting two thresholds
- Itemized deductions exceed the standard deduction
- Medical expenses exceed 7.5% of Adjusted Gross Income
- Enjoy first-dollar savings through pre-tax payroll deduction
- Flexible Spending Account
- Health Savings Account
VA Grants
The Veterans Administration offers Special Home Adaptation (SHA) grants to veterans with qualified service-connected disabilities. Recipients could use the free money to purchase and install pull-down kitchen cabinets for easier access.
Apply for the VA SHA grant early to save your place in line. Do not delay. Congress limited the benefit to 120 recipients per fiscal year (October 1 to September 30). Expect to wait, even if you are eligible.
Kitchen Electrification Programs
The government also supports programs through HEEHR that reduce kitchen remodeling costs associated with electrification (wires, outlets, circuit breaker panels). Replacing an older gas range with an electric stove might require additional upgrades to deliver the extra juice.
As mentioned above, the High-Efficiency Electric Home Rebate (HEEHR) is coming soon in most states. You might need to wait before starting specific projects.
Electrical Wiring
HEEHR offers up to $2,500 off the purchase and installation costs of rewiring a kitchen (or other rooms in your home) to accommodate the extra load of favored improvements, such as electric stovetops and ovens.
Electric ranges require a 220-volt outlet with circuitry producing at least 40–50 amps. If you are converting from a gas stove, which can function using a standard 110-volt outlet, you may need to upgrade your wiring.
Electric Panel
HEEHR offers up to $4,000 off the purchase and installation costs of upgrading a circuit breaker panel to accommodate additional electric loads. Of course, kitchen renovations are unlikely to trigger this need alone.
Federal HVAC energy-efficiency incentives could lower the costs of keeping our food preparation, dining, and clean-up areas warm in the winter and cool in the summer. Heat pumps are more energy efficient but consume electricity rather than gas, perhaps requiring the upgrade of your circuit breaker panel.
