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This homeowner cut her heating bill in half — and got a $1,200 tax credit

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1 year ago

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Banksphotos | E+ | Getty Images

Megan Moritz bought her dream house in 2019.

However, the 1,400-square-foot home, in the Arlington Heights suburb northwest of Chicago, was built in the 1930s and lacked insulation — leading to heating bills that were “very high,” said Moritz, 48.

The first-time homeowner opted to pay about $5,700 for a series of projects last year to make her home more energy-efficient. She added insulation to the walls, and sealed gaps in ductwork connected to her furnace to prevent air leaks.

Moritz shaved her gas heating bill by half or more during the winter months, and her home is now “delightfully toasty,” she said. She slashed her bill to $102 in December 2024 from $311 two years earlier, records show. In January 2025, her bill was $116, down from $288 in 2023.

Moritz also received a $1,200 federal tax break when she filed her tax return this year, according to records reviewed by CNBC. She’s among millions of homeowners who claim a tax credit each year for retrofits tied to energy efficiency.

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“The biggest perk to me, honestly, was not freezing my butt off,” said Moritz, who works for a global professional association. “Then it was the monthly bill going down as much as it did.”

“The tax credit was a nice little perk, the cherry on top,” she said.

The tax break, however, may not be available for much longer.

Republicans have signaled an intent to put the tax break and other consumer financial incentives linked to the Inflation Reduction Act on the chopping block to raise money for a multi-trillion-dollar package of tax cuts being negotiated on Capitol Hill.

What is the tax break?

The tax break — the energy efficient home improvement credit, also known as the 25C credit — is worth up to 30% of the cost of a qualifying project.

Taxpayers can claim up to $3,200 per year on their tax returns, with the overall dollar amount tied to specific projects.

They can get up to $2,000 for installing a heat pump, heat pump water heater or biomass stove/boiler, and another $1,200 for other additions like efficient air conditioners, efficient windows and doors, insulation and air sealing.

About 2.3 million taxpayers claimed the credit on their 2023 tax returns, according to Internal Revenue Service data.

The average family claimed about $880, according to the Treasury Department.

‘A much harder decision’

A thermal scan of Megan Moritz’s Chicago area home shows areas of energy inefficiency.

ARC Insulation

Blair Kennedy, a homeowner in Severna Park, Maryland, plans to claim a credit when he files his tax return next year.

Kennedy, 38, had fiberglass insulation installed in his attic and air-sealed his 3,700-square-foot home in March, a project that cost just over $6,000 after state and local rebates.

A federal tax break would reduce his net cost to about $5,000, Kennedy expects.

“I think it would’ve been a much harder decision to do it” without tax credits, said Kennedy, a real estate agent.

The tax break has been available on-and-off since Congress passed the Federal Energy Tax Act of 1978, according to a paper by Severin Borenstein and Lucas Davis, economists at the Haas Energy Institute at the University of California, Berkeley.

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The original rationale for the credit was to boost U.S. energy security following energy crises in the 1970s, they wrote.

Today, the main goal of the tax break is to mitigate climate change, Davis said in an interview.

Making homes more energy-efficient helps reduce their planet-warming greenhouse gas emissions. Residential energy use accounts for about 20% of U.S. greenhouse gas emissions, according to researchers in the School for Environment and Sustainability at the University of Michigan.

The Inflation Reduction Act — a historic law to combat climate change, signed by former President Joe Biden in 2022 — extended the tax break through 2032 and made it more generous. Biden-era Treasury officials said the tax break was more popular than expected.

“A lot of these clean-energy technologies have significant benefits, but they can tend to cost a bit more than the alternative,” Davis said. “This [tax] credit offers an incentive to spend a little bit more for a capital investment that will yield climate benefits.”

Households can only claim the tax credit if they have an annual tax liability, since the credit is nonrefundable. Most of the benefits accrue to higher-income households, which are more likely to have a tax liability, Davis said.

Risk of disappearance

The IRA also included many other consumer tax breaks and financial incentives tied to electric vehicles, rooftop solar panels and energy efficiency.

Republicans in Congress may claw back funding as part of a forthcoming tax-cut package expected to cost at least $4 trillion, experts said. President Donald Trump pledged to gut IRA funding on the campaign trail, and Republicans voted more than 50 times in the House of Representatives to repeal parts of the law.

“Absolutely, there is a risk in the current budget bill that these credits would be changed or go away completely,” Davis said.

However, there’s a group of Republicans in the House and Senate seeking to preserve the tax breaks. Their support could be enough to save the incentives, given slim margins in each chamber.

About 85% of the clean-energy investments and 68% of jobs tied to Inflation Reduction Act funding are in Republican congressional districts, according to a 2024 study by E2.

Moving forward without tax break

Many households would likely still undergo energy-efficiency projects even if the tax breaks disappear, Davis said.

Savings on utility bills are often a primary motivation, experts said.

There’s generally a five- to 10-year return on investment given monthly energy savings, said Ryan Warkentien, head of ARC Insulation, which did the retrofit on Moritz’s Chicago area home.

That time frame can easily shorten to three to five years for those who qualify for a tax credit, he said.

A “crazy” high energy bill — about $1,000 in January — motivated Kennedy to get an initial energy audit to identify efficiency problems in his Maryland home. (Taxpayers can claim a $150 tax credit for the cost of such an audit.)

Kennedy is hoping to save at least 15% on his monthly energy bills. He also expects to put less stress on his heating, ventilation and air-conditioning unit to keep the house at a comfortable temperature, prolonging its lifespan and delaying future maintenance costs.

“The tax credit ended up being the icing on the cake,” he said.

 Likewise for Moritz.

“I’m literally in love with my house,” she said. “The investments I make in my house are for me, because I want to spend the rest of my life here.”

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$20,000 Caution Bond Requirement for US Visa Applications imposed on 50 Countries

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6 days ago

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August 8, 2026

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The United States Department of State has officially implemented a revised visa policy introducing a mandatory posting requirement for caution payments of up to $20,000 on select foreign travel applications. Under the updated regulatory framework, consular officials are authorized to require temporary nonimmigrant visa applicants from targeted foreign countries to post a refundable financial bond of $20,000 as a condition for visa issuance. The policy mechanism is designed to address diplomatic concerns regarding high overstay rates among temporary visitor, business, and educational visa categories.

The caution bond pilot program applies selectively to foreign nationals from designated countries whose diplomatic entities record historical visa overstay rates exceeding established federal thresholds. Under administrative guidelines published by the State Department, the full financial deposit is posted directly to a dedicated federal escrow account prior to final visa issuance. The entire caution payment is automatically refunded to the applicant upon verified proof of timely departure from the United States in strict compliance with the authorized duration of stay. Conversely, failure to depart within the legal timeframe results in full forfeiture of the posted financial bond to the United States government.

Diplomatic representatives and travel policy experts have expressed varying perspectives regarding the operational implementation of the caution bond system. Administration officials emphasize that the measure serves as an effective, market-based incentive to enforce international travel compliance and preserve domestic immigration security standards. However, international trade organizations and foreign diplomatic missions have raised concerns regarding the financial burden imposed on legitimate business travelers, foreign students, and commercial partners from developing nations.

The United States finalized the rule to make the temporary visa bond program permanent, taking effect on August 3, 2026. The updated permanent regulation replaces the prior 12-month pilot, eliminates the lowest $5,000 tier, and raises the maximum required bond amount to $20,000 for specific B-1/B-2 business and tourist visa applicants.

Here is the list of the 50 countries on the list as o August 3, 2026

African Nations (31 Countries)

  • Algeria
  • Angola
  • Benin
  • Botswana
  • Burundi
  • Cabo Verde (Cape Verde)
  • Central African Republic
  • Côte d’Ivoire (Ivory Coast)
  • Djibouti
  • Ethiopia
  • Gabon
  • The Gambia
  • Ghana
  • Guinea
  • Guinea-Bissau
  • Lesotho
  • Malawi
  • Mauritania
  • Mauritius
  • Mozambique
  • Namibia
  • Nigeria
  • São Tomé and Príncipe
  • Senegal
  • Seychelles
  • Tanzania
  • Togo
  • Tunisia
  • Uganda
  • Zambia
  • Zimbabwe

Asian & Eastern European Nations (11 Countries)

  • Bangladesh
  • Bhutan
  • Cambodia
  • Georgia
  • Kyrgyzstan
  • Mongolia
  • Nepal
  • Papua New Guinea
  • Tajikistan
  • Turkmenistan
  • Uzbekistan

Caribbean & Latin American Nations (5 Countries)

  • Antigua and Barbuda
  • Cuba
  • Dominica
  • Grenada
  • Venezuela

Oceanian Nations (3 Countries)

  • Fiji
  • Tonga
  • Vanuatu

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Next-Generation Retirement Planning: Managing Longevity Risk and Variable Income Streams

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1 week ago

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August 7, 2026

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Retirement planning strategies are evolving in 2026 to address increased life expectancies, shifting dynamic market conditions, and the transition away from traditional defined-benefit pensions. Individual investors and financial advisors are abandoning rigid retirement models in favor of flexible, multi-asset strategies designed to mitigate longevity risk and preserve purchasing power over multi-decade retirement horizons.

Mitigating Longevity Risk with Dynamic Asset Allocation
As average life expectancies extend past eighty-five years, one of the primary financial risks facing retirees is outliving their accumulated wealth. Traditional fixed income allocations—such as the standard 60/40 equity-to-bond portfolio—are being reevaluated to ensure portfolios generate sufficient capital growth alongside reliable income.

Financial planners recommend maintaining a meaningful equity allocation throughout retirement to offset long-term inflation erosion. High-dividend equity funds, global real estate investment trusts (REITs), and inflation-indexed Treasuries are combined to create diversified portfolios that deliver both growth and income stability.

The Transition to Dynamic Withdrawal Strategies
The classic “4% safe withdrawal rule” is increasingly replaced by dynamic withdrawal strategies that adapt annually based on market performance. Under a dynamic withdrawal framework, retirees adjust their annual distribution rates within pre-set caps and floors:
– Market Upside: During strong market returns, retirees can increase discretionary spending or fund family legacy gifts.
– Market Downturns: During market pullbacks, spending distributions are temporarily reduced to prevent sequence-of-returns risk and preserve core investment principal.

Guaranteed Lifetime Income Options and Deferred Annuities
To establish a guaranteed baseline for essential living expenses, individuals are incorporating modern fixed-indexed and deferred longevity annuities into their broader retirement architectures. Modern annuity structures offer competitive return caps, transparent fee schedules, and inflation-adjustment options.

By funding essential expenses—such as housing, healthcare, and insurance—with guaranteed income streams from Social Security, pensions, and annuities, retirees can manage discretionary investment portfolios with greater flexibility and lower emotional stress during market volatility.

Actionable Steps for Future Retirees
1. Calculate Baseline Retirement Expenses: Determine fixed living costs and map guaranteed income sources to cover essential expenditures.
2. Adopt Flexible Withdrawal Rules: Implement dynamic spending rules to protect investment principal against market downturns.
3. Incorporate Inflation-Protected Assets: Maintain exposure to dividend-growing equities and inflation-indexed bonds to safeguard long-term purchasing power.

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Building Generational Wealth: Family Governance, Estate Tax Optimization, and Asset Protection

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2 weeks ago

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August 1, 2026

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As the largest intergenerational transfer of wealth in history accelerates, high-net-worth families, entrepreneurs, and individual investors are placing heightened emphasis on comprehensive estate planning, family governance, and asset protection. Preserving capital across generations requires a balanced approach combining tax-efficient legal structures with open family communication and financial literacy education.

Optimizing Estate Tax Exemptions and Trust Structures
With potential modifications to federal estate tax exemption thresholds on the horizon, proactive estate planning is essential for high-net-worth households. Estate planning attorneys and wealth advisors are establishing multi-generational trust structures to transfer wealth efficiently while minimizing estate and gift tax exposure.

Popular structural strategies include:
– Irrevocable Life Insurance Trusts (ILITs): Utilizing life insurance proceeds to provide liquidity for estate tax obligations without expanding the taxable estate.
– Grantor Retained Annuity Trusts (GRATs): Transferring rapidly appreciating assets to beneficiaries with minimal gift tax consequences.
– Dynasty Trusts: Preserving wealth across multiple generations while providing long-term asset protection from creditor claims and legal liabilities.

Establishing Family Governance and Financial Education
Legal and financial structures alone cannot guarantee long-term wealth preservation without effective family governance. Financial advisors report that a significant percentage of multi-generational wealth dissipation stems from lack of communication and inadequate financial preparation among heir generations.

Families are establishing formal family governance frameworks, including periodic family meetings, written mission statements, and structured philanthropic foundations. Involving younger family members in charitable grant-making and investment discussions fosters financial stewardship and prepares heirs to manage family assets responsibly.

Digital Asset Custody and Legacy Planning
In today’s modern economy, estate planning must extend beyond physical real estate and traditional brokerage accounts to encompass digital assets. Comprehensive estate plans now include detailed inventories and legal access protocols for corporate domain names, intellectual property, digital media rights, and cryptocurrency holdings.

Fiduciaries and estate executors should be provided with secure, encrypted access mechanisms and clear legal authority to manage and transfer digital holdings in accordance with the owner’s estate directions.

Practical Steps for Legacy Planning
1. Review and Update Estate Documents: Ensure wills, revocable trusts, and power-of-attorney designations accurately reflect current family structures.
2. Establish Structured Trusts: Utilize irrevocable trusts to protect assets from creditors and minimize future estate tax liabilities.
3. Create a Digital Estate Inventory: Document access protocols and legal permissions for all online accounts, intellectual property, and digital assets.

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