Federal Tax Incentives
The Inflation Reduction Act (IRA) presents an array of new opportunities for you to reduce utility costs, receive support for purchasing electric vehicles, and access renewable energy solutions for your household. Learn more about the White House's IRA by visiting the Clean Energy for All page at whitehouse.gov/cleanenergy.
Tax Credits and Rebates
Home Energy Audit
It's important to know how your home uses energy. Before making any efficiency upgrades consider an energy audit.
A home energy auditor will:
- analyze your utility bills to determine your energy consumption
- conduct interior, exterior, health, and safety inspections of your home
- assess your electrical system
- inspect appliances
- conduct a blower door test
When all this is done, they will provide you with your personalized energy report including suggestions for making your home more energy efficient.
The Inflation Reduction Act can get you up to $150 off the cost of your audit when you file your 2023 taxes. See page 107 of the Inflation Reduction Act Guidebook.
Incentive Type: Tax Credit
Incentive Amount: 30% of the cost paid by the consumer, up to $150
How to Access: Submit IRS Form 5695 when filing your taxes if you meet the requirements detailed on IRS.gov.
Tax Credits and Rebates
Appliances
The Inflation Reduction Act provides rebates that can cover up to 100% of the costs of new electric heat pump clothes dryers, electric stoves, cooktops, ranges, and ovens, depending on household eligibility.
Learn more at the whitehouse.gov Clean Energy site.
Incentive Type: Tax Credit & Rebate
Incentive Amount: Varies based on the appliance. For a list of the incentives, review the Incentives for Homeowners page on Energy.gov.
Tax Credits and Rebates
Heat Pumps
A heat pump provides both heating and cooling for homes, as a super-efficient alternative to furnaces and air conditioners. Installing a heat pump can save a family hundreds of dollars each year on energy bills. The Inflation Reduction Act includes tax credits and rebates that can cover up to 100% of the costs, depending on household eligibility.
Learn more about heat pump eligibility and rebates at whitehouse.gov.
Incentive Type: Tax Credit & Rebate
Incentive Amount: 30% of the cost paid by the consumer, up to $2,000/year, is available through a tax credit. Additional income-based incentives will be announced through the Home Energy Rebates program (for households below 150% area median income).
How to Access: For the tax credit, submit IRS Form 5695 when filing your taxes if you meet the requirements detailed on IRS.gov. Rebates are not yet available. Stay tuned as the Home Energy Rebates programs are deployed nationwide and administered through your State Energy Offices.
Tax Credits and Rebates
Heat Pump Water Heaters
Support is available to install heat pump water heaters, which can be two to three times more energy efficient than conventional water heaters. The Inflation Reduction Act includes tax credits and rebates that can cover up to 100% of the costs, depending on household eligibility.
Incentive Type: Tax Credit & Rebate
Incentive Amount: 30% of the cost paid by the consumer, up to $2,000/year, is available through a tax credit. Additional income-based incentives will be announced through the Home Energy Rebates program (for households below 150% area median income).
How to Access: For the tax credit, submit IRS Form 5695 when filing your taxes if you meet the requirements detailed on IRS.gov. Rebates are not yet available. Stay tuned as the Home Energy Rebates programs are deployed nationwide and administered through your State Energy Offices.
Tax Credits and Rebates
Electric Vehicles
The Inflation Reduction Act will help more families never pay at the pump again, with tax credits up to $7,500 for new electric vehicles and $4,000 for used electric vehicles – saving families an average of $950 a year on fuel costs. Learn which vehicles qualify for the 2023 electric vehicle tax credit in 2023.
For more information on the Inflation Reduction Act's rebates regarding Electric Vehicles, see the EV section of the Clean Energy for All page on whitehouse.gov.
Incentive Type: Tax Credit
Incentive Amount: Up to $7,500 for eligible buyers of qualified clean vehicles.
How to Access: Submit IRS Form 8936 when filing your taxes if you meet the requirements detailed on IRS.gov.
Tax Credits and Rebates
Solar Panels
The Inflation Reduction Act will help more Americans harness the sun’s energy to power their homes with clean electricity and save big on utility bills. Tax credits are available now to cover up to 30% of the installation costs – and this federal credit can be paired with additional incentives available in many states. The average family will save $300 per year, or $9,000 over the life of the system.
Incentive Type: Tax Credit
Incentive Amount: 30% of the cost paid by the consumer.
How to Access: Submit IRS Form 5695 when filing your taxes if you meet the requirements detailed on IRS.gov.
To find out about solar options for your home, visit Energy Sage with no strings attached and NO ANNOYING CALLS! Create an account on Energy Sage and contractors will submit quotes to the app. Energy Sage’s mission is to empower people everywhere to switch to affordable, reliable clean energy solutions with trusted resources, unbiased advice, and a simple shopping experience.
Tax Credits and Rebates
Weatherized Windows and Doors
Save on a range of home improvements that reduce energy leakage – keeping homes warmer in the winter, cooler in the summer, and saving money on utility bills. Windows can be responsible for 25-30% of heating and cooling energy use, and doors can leak significant amounts of energy as well. In addition to supporting upgrades of exterior windows and doors, the Inflation Reduction Act can also cover the costs of home energy audits so that an inspector can identify the best improvement options.
Incentive Type: Tax Credit
Incentive Amount: 30% of the cost paid by the consumer, up to $600/year
How to Access: Submit IRS Form 5695 when filing your taxes if you meet the requirements detailed on IRS.gov.
Interested in knowing when there are new credits and rebates available?
Sign up to receive updates from CleanEnergy.gov!
Actions You Can Take
Take Action and Save!
Here are some more resources to help you weatherize your home, install solar panels, and more!
