Inflation Reduction Act:
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The Inflation Reduction Act (August 2022) offers incentives for home energy audits, electrical panel upgrades, efficiency work, heat pumps, water heaters, solar panels, and electric vehicles. That's pretty much everything recommended for your Home Action Plan!
Rewiring America has some great resources that go into everything in detail. Use their explainer chart and savings calculator to understand how these incentives impact your household. Incentives for EVs have gotten more complex, with critical mineral and battery requirements. Forbes explains how the incentives lead to a "more sustainable, equitable, and secure transportation future." Electrek lists the models that currently qualify for the EV tax credit. This summary from the Electric Vehicle Association explains how the tax credit works in 2024. From Canary Media:
The Energy Efficient Home Improvement Credit (25C) can help you make a variety of home energy-efficiency upgrades, from installing insulation to buying air-source heat pumps. These credits shrink your tax bill by up to 30% of costs and are capped annually: up to $2,000 for a heat-pump air conditioner/heater or a heat-pump water heater, and separately, up to $1,200 on other qualifying improvements. That means you can claim a total of $3,200 in any single year. Because this credit resets annually, spacing out upgrades makes financial sense. For example, it’s better to get the heat pump and heat-pump water heater in different years to claim the credit twice and potentially reduce your tax bill by $4,000, rather than buy both appliances in the same year and only be able to claim $2,000. A guide from a local energy professional: short summary, video presentation, and slides.
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