Portions of this money can be received through energy tax credits for going green and taking measures to lower your carbon footprint. These benefits will run through 2032, and it’s possible you could qualify for a whopping $10,000 (opens in new tab) in credits. More information can be found from the White House Clean Energy website (opens in new tab). There are several ways to earn the IRA’s energy tax credits. Keep reading to learn more about each.
Buy Energy Star Appliances
By purchasing energy efficient appliances, you could save hundreds thanks to the inflation reduction act’s energy tax credits. Here are the products you can receive credits on, according to Energy Star (opens in new tab). Air Source Heat Pumps Tax Credit Amount: $300 Central Air Conditioning Tax Credit Amount: $300 Gas, propane or hot water boiler Tax Credit Amount: $150 Gas, propane or oil furnaces and fans Tax Credit Amount: $150 Gas, oil, propane water heater Tax Credit Amount: $300 Electric Heat pump water heater Tax Credit Amount: $300 Advanced main air circulating fan Tax Credit Amount: $50
Energy Efficient Home Improvements
You can also save by investing in the following energy efficient home improvements. Insulation: Includes typical insulation equipment including batts, rolls, blow-in fibers, rigid boards, expanding spray, and pour-in-place. Tax Credit Amount: 10% of the cost, up to $500 Roofs: Energy Star certified metal and asphalt roofs that are designed to reduce heat gain through pigmented coatings or cooling granules are eligible. Tax Credit Amount: 10% of the cost, up to $500 Windows, doors and skylights: Products must be Energy Star certified. You do not need to replace all windows/doors/skylights in your home to qualify. Tax Credit Amount: 10% of the cost, up to $500 (windows are capped at $200)
Electric vehicles
If you buy a new electric car, you could be eligible to receive up to $7,500 (opens in new tab) if the vehicle was assembled in North America. However, credits will only be available to individuals making less than $150,000, single heads of households making less than $225,000 and married couples with a joint income of less than $300,000. Owners of used electric vehicles can receive a tax credit of up to $4,000 (opens in new tab). The credit will only apply to cars less than $25,000. Credits are only eligible for individuals making $75,000 or less, $112,500 for single heads of households and $150,000 for married couples.
Renewable home energy systems
By installing the following home energy systems, you can receive a credit equal to 30% of the cost.
Geothermal heat pumpsSmall wind turbines (residential)Solar energy systems (solar water heaters / solar panels)Fuel cells (residential fuel cell and microturbine system)Biomass fuel stoves
