The Inflation Reduction Act (IRA) is a federal law that passed in August 2022 and includes environmental provisions covering incentives for solar, energy efficiency, electric vehicles, and more! Find out ways you can save money and help the environment through the IRA incentives below.
Homeowners that install rooftop solar can now receive a tax credit equal to 30% of equipment and installation costs through Section 25D of the Internal Revenue Code. This 30% tax credit is uncapped and available now! To take advantage of this credit, homeowners must pay for the upfront costs of the solar installation and file for the tax credit afterward. Contact a local solar installer for price estimates. To learn more about solar tax credits, visit Energy.gov.
The IRA also incentivizes battery storage installations which allow homeowners to store energy produced by their rooftop solar as well as energy from the power grid for later use. Like the rooftop solar incentive, Section 25D of the Internal Revenue Code allows homeowners to receive an uncapped tax credit of 30% of battery storage equipment and installation costs. This tax credit is available beginning in 2023.
Electric Vehicle Incentives
EVs purchased beginning in 2023
New EVs: income-qualified households will be able to receive a tax credit of up to $7,500.
- The vehicle must be assembled in North America and have a battery that meets certain sourcing requirements.
- The vehicle must have a manufacturer’s suggested retail price of $80,000 or less for pickup trucks, vans, and sport utility vehicles (SUVs) and $55,000 or less for other vehicles, including sedans.
Used EVs: income-qualified households will have access to a tax credit of up to $4,000.
- The vehicle must be at least two years old and cost $25,000 or less.
Visit IRS.gov for more information on EV tax credit requirements.
IRA Savings Calculator
Find a list of IRA incentives and learn how much money you will save with Rewiring America’s IRA Calculator.