Tag: tax credits

If you’re interested in making energy-efficient home improvements, you might want to check out the Inflation Reduction Act of 2022 (IRA) which was passed last year. It encourages homeowners and renters to move toward clean energy by providing incentives including tax credits and rebates.

One of the changes that has been in the news recently is moving away from gas stoves and toward alternatives like induction heat. Other home improvements include replacing gas water heaters, new windows and doors, insulation, and adding solar panels.

A recent SRES blog says some of the available IRA tax credits for homeowners include:

• Home energy audits – A 30% tax credit (up to $150).
• Heat pumps – A 30% tax credit for the costs of buying and installing a heat pump. 
• Windows and skylights – A 30% tax credit (up to $600 annually) on exterior windows and skylights. 
• Electric vehicles – Up to $7,500 toward the purchase of a new electric vehicle (EV) and up to $4,000 toward the purchase of a used EV. 

Here are some great resources SRES.org offers for more details:

• The Natural Resources Defense Council (https://www.nrdc.org/stories/consumer-guide-inflation-reduction-act) “A Consumer Guide to the Inflation Reduction Act” talks about how to tap IRA tax credits and rebates. 
• Rewiring America’s resources include downloadable IRA Fact Sheets (https://www.rewiringamerica.org/ira-fact-sheets), the Rewiring America’s Guide to the Inflation Reduction Act https://www.rewiringamerica.org/IRAguide), and a calculator (https://www.rewiringamerica.org/app/ira-calculator), “How much money can you get with the Inflation Reduction Act?” 
• Internal Revenue Service (https://www.irs.gov/inflation-reduction-act-of-2022). Stay current on IRS updates on IRA and find the appropriate tax form (Form 5695) to calculate and take residential energy credits. 
• Energy Star (https://www.energystar.gov/about/federal_tax_credits/non_business_energy_property_tax_credits. Learn about the array of Energy Star-certified equipment—heat pumps, water heaters, biomass fuel stoves, electric panel upgrades, and so forth—eligible for the tax credits. 
• Recent articles. See “Inflation Reduction Act Tax Credits and Rebates: Save On Home Energy Upgrades with These Incentives” (https://www.cnet.com/home/energy-and-utilities/save-on-your-next-home-energy-upgrade-with-these-incentives/) and “Save More with Tax Credits for Energy-Efficient Home Improvements” (https://www.kiplinger.com/taxes/605069/inflation-reduction-act-tax-credits-energy-efficient-home-improvements).