Tax Rebates/Credits
The US federal government offers many incentives for individuals who adopt clean energy practices
The Inflation Reduction Act
- The Inflation Reduction Act of 2022 provides federal tax credits and deductions that empower Americans to make homes and buildings more energy-efficient to help reduce energy costs while reducing demand as we transition to cleaner energy sources.
- New federal income tax credits are available through 2032 providing up to $3,200 annually to lower the cost of energy efficient home upgrades by up to 30 percent.
- Appliances include
- Heat pumps
- Heat pump water heaters
- Insulation
- Doors and windows
- Electrical panel upgrades
- Home energy audits
- And more
- They can also help families save money on their monthly energy bills for years to come.
Residential Clean Energy Credit
- Provides a 30 percent income tax credit for clean energy equipment
- rooftop solar
- wind energy
- geothermal heat pumps
- battery storage
- Provides credit until 2032 at whcih point credit steps to 22% for 2033/34
Limits
Homeowners may claim credit until one of the following is fulfilled:- $1,200 for energy property costs and certain energy efficient home improvements, with limits on doors ($250 per door and $500 total), windows ($600) and home energy audits ($150)
- $2,000 per year for qualified heat pumps, biomass stoves or biomass boilers
EV Credits
- A new qualified plug-in EV or fuel cell electric vehicle may qualify you for up to $7,500 in credit under Internal Revenue Code secion 30D
- The (previously mentioned) Inflation Reduction Act of 2022 changed credit rules for vehicles from 2023 to 2032
- To qualify, adjusted gross income cannot exceed $300k for jointly filing couples, $225k for heads of households, or $150k for all other filers
- Dollar amounts for credit are availible on the IRS page