Inflation Reduction Act – Helping Homeowners
Tax Credit and Grants
Starting in January 2022 and ending in 2032 there are tax credits for homeowners.
Residential Clean Energy Tax Credits:
are not income based and are credits off your taxes. The tax credits can be rolled over if you cannot use them in 1 year.
30% back on what you pay for household clean energy systems
- Solar, wind or geothermal systems as well as the labor to install them.
- Stand alone batteries with more than 3 Kwh of storage.
Energy Efficient Home Improvement Tax Credit:
from January 1 until the end of 2032 for homeowners, renters and multifamily buildings with an annual cap of $2000 per year for heat pumps, heat pump hot water heaters, biomass stoves and boilers.
- $1200 for weatherization and installation including electrical panel upgrades.
- Tax credit caps at $2000 annually
Electric Vehicles and Charging Stations:
now until 2032- Income limits apply $150000 for single taxpayers, $225000 for head of household, and $300000 filing jointly
- $7500 Clean Vehicle Credit- new cars assembled in North America and battery minerals sourcing requirements. Price caps apply for smaller vehicles at $55,000 and $80,000 SUV’s and trucks
- 30% tax credit capped at $4000 for used electric vehicles.
- 30% for electric vehicle chargers.
High-Efficiency Electric Home Rebate (HEEHR):
Funds are from Dept. of Energy to your State Energy Office. This funding may be available by mid 2023. These will be rebates and will cover up to 100% of costs for low-income and 50% for moderate income. Income will be based on median income for your address. These rebates can be combined with the credit from the Inflation Reduction Act. Up to $14000 per year in point -of -sale discounts for electrification projects including $8000 for heat pumps, $840 for an electric stove and $1600 for insulation projects.
HOMES (Home Owner Managing Energy Savings) Rebate Program:Everyone qualifies. Gets you cash back for weatherization and installing energy efficient appliances. The amount you get back depends on how much energy you saved and your household income. Save more energy and get more cash. Low and moderate income households qualify for double the rebate and are eligible for up to 80% of project costs. That’s $8000 max if you cut energy use by 35% and $4000 max if you cut energy use by 20%.
Additional Information: https://www.energy.gov/scep/home-energy-rebate-programs-frequently-asked-questions