The American Solar Energy Society September 19, 2022
The Inflation Reduction Act (IRA) is the largest climate bill in U.S. history. A main policy focus of the IRA is supporting tax credits and rebates for clean energy, electric vehicles, and efficiency updates. Please see below for some highlights and how this bill can benefit you and/or your business:
Residential Clean Energy Credit: 30% tax credit for residential installations of clean energy (including solar, battery storage, etc.), offered through the end of 2034.
HOMES Rebate Program: Allocates $4.3B for state-level rebates for energy-saving residential retrofits through the end of 2031.
Energy Efficient Home Improvement Credit: 30% tax credit for residential efficiency investments (including insulation, windows, heating/cooling appliances, etc.) offered through the end of 2032.
High-Efficiency Electric Home Rebate Program: Allocates $4.5B for state-level rebates for home electrification investments, specifically for low and moderate-income households.
Clean Vehicle Credit: $7,500 tax credit for the purchase of new electric vehicles, offered through the end of 2032.
Previously-Owned Clean Vehicle Credit: $4,000 tax credit for the purchase of used electric vehicles.
All of these policy incentives are projected to increase the deployment of clean energy, electric vehicles, and energy efficiency investments. This is an unprecedented level of policy support from the U.S. federal government. Please note that not all households are eligible for all credits and rebates. Consult with state-specific program specialists, tax accountants, and energy professionals about potential savings for your household.
For more information, please see By the Numbers: The Inflation Reduction Act press release from the White House and What the Inflation Reduction Act does for green energy article by PBS.