Madison Reporter

From the Dane County Office of Energy & Climate Change:

Due to the recent passage of the Inflation Reduction Act (IRA) there has never been a better time to develop clean energy projects and improve your energy efficiency. Below highlights opportunities for homeowners that are available from the Inflation Reduction Act as of January 1, 2023. Read more about ways you can tap into IRA funding.

Energy Efficiency: 

30% of the cost, up to $1,200 per year, in tax credits for home energy efficiency upgrades, with no income limits. These credits can be claimed annually for different projects. Available credits include:

• Home energy audits (up to $150)
• Insulation materials (up to $1,200)
• Windows, including skylights (up to $600)
• Exterior doors (up to $250 each/$500 total for all exterior doors)
• Efficient air conditioners, efficient heating equipment, and efficient water heating equipment (up to $600)
• Electric or natural gas heat pumps, heat pump water heaters, and biomass stoves (up to $2,000 –annual limit may be exceeded).
• Electric panel or circuit upgrades for new electric equipment (up to $600)
• Geothermal heat pumps and solar (water heating) (up to $1,200)

Solar Installations:

Residential solar power: 30% of eligible expenses for solar installation with no dollar cap or income qualifiers. 

Electric Vehicles:

New electric vehicles:

• $3,750 credit for electric vehicles with batteries produced in North America
• $3,750 credit for electric vehicles using a certain percentage of critical battery minerals extracted or processed in the United States.
• The U.S. Department of Energy (DOE) list of eligible vehicles
• Total tax credit available is $7,500
• Pickups, SUVs, and vans must cost less than $80,000
• Cars must cost less than $55,000
• Income requirements: Joint tax return less than $300,000; Head of household less than $225,000; Single-payer less than $150,000

Used electric vehicles:

• $4,000 tax credit or 30% of vehicle’s sale price
• Stipulations: vehicle’s model must be at least two years older than the current “new” model year, and total vehicle cost must be less than $25,000
• Income requirements: Joint tax return less than $150,000; head of household less than $112,300; single-payer less than $75,000

Because Inflation Reduction Act is a mix of tax credits and incentives, the benefits will vary based on a homeowner’s specific situation. Rewiring America has a calculator that lets a user input their specific data and see estimated credits. You can also visit the IRS Fact Sheet (PDF) to learn about the specifics of each of these credits and view a summary table for each category.

Original source can be found here.