The Inflation Reduction Act (IRA), passed this summer, is expected to reduce emissions by 40% by the end of the decade. Included in the Act are incentives for renewable energy, energy efficiency, and electrification of transportation. Tax credits for clean energy and electric vehicles were extended, providing certainty to consumers and enabling installers to add staff and ramp up their business. Electrification and energy efficient appliances are now eligible for rebates and incentives, which will speed up the transition to a clean energy economy and save money for consumers.
Sierra Club shared this list of the top benefits of the IRA:
1. 30% solar system tax credit has been extended until 2032.
2. 30% energy storage tax credit for batteries that store solar energy and can be used to power your home during a grid outage.
3. Tax credits for clean energy for home builders.
4. Electric vehicle tax credits of up to $7,500 for new cars and up to $4,000 for used cars.
5. 30% tax credit on EV chargers.
6. $8,000 rebate on heat pumps.
7. $1,750 rebate on heat pump water heaters.
8. $840 rebate on electric stoves, cooktops, ranges and ovens.
9. Up to $4,000 rebate on breaker box upgrades and $2,500 rebate on electrical wiring.
If you are considering upgrading appliances or energy systems in your home, it may pay to do so in 2023. Some of the incentives require manufacturing in America, and some link incentives to income levels to be sure that those who will benefit most from energy savings receive larger incentives.
