WHO KNEW the Inflation Reduction Act Can Help You Directly?
The Inflation Reduction Act (IRA) enacted last month is hailed as the biggest investment in climate change in U.S. history. One exciting component is the broad menu of benefits for individuals to help each of us reduce our energy costs and carbon emissions. There are tax credits (new, revived and/or improved) for increasing home energy efficiency, for installing renewables such as solar and battery storage systems, for new and used EV purchases and EV charging installation, rebates aimed at low and middle income consumers for purchasing high efficiency appliances, and more.
We recommend that everyone take a few moments to check out how the IRA can help themselves go greener more affordably. First, read an overview about IRA at these sources: PBS (“What the IRA does for green energy”) and NPR (“3 ways the IRA would pay you to help fight climate change”).
Then use this calculator from Rewiring America to see which IRA benefits can help you reduce your carbon footprint. The calculator works by applying information that you enter to identify which IRA benefits are available to you and when.
Please note the calculator is a great start, but it does not drill down to the most detailed level for some benefits, such as manufacturing considerations for EVs. And there are a few other topics where DC and each state has to decide whether a federal benefit can be combined with state incentives. We recommend that you always clarify IRA eligibility with your dealer/contractor before making a purchase, and consult with your tax advisor to fully understand and anticipate the impact of potential tax credits on your tax return.
