Inflation Reduction Act: A Money-Saving Guide for Consumers
TL/DR –
The Inflation Reduction Act allows consumers to save money on climate-friendly purchases such as energy-efficient installations and electric cars through federal tax credits and rebates. The law targets emissions from transportation and buildings by encouraging replacement of fossil-fuel burning appliances and vehicles with cleaner versions, and making homes energy-efficient. The benefits of the law will be available for a decade or more, with federal tax credits having already taken effect, while rebates managed by state and tribal governments have yet to be launched.
Climate-Friendly Home & Vehicle Savings via Federal Tax Credits
Want to make your home more energy-efficient or purchase an electric car? The Inflation Reduction Act now enables you to save significantly on climate-friendly purchases through federal tax credits and rebates. The law, aimed at cutting pollution by investing in clean energy, allows Americans to replace fossil-fuel burning vehicles and appliances with cleaner alternatives at lower costs.
To maximize savings, planning is essential. While many benefits are available for a decade or more, not all are accessible yet. Federal tax credits, which let eligible consumers recoup expenses, began last year. Rebates, up-front discounts or partial refunds managed by state and tribal governments, are yet to launch. Each state is in the process of setting up its own rebate process, with some states progressing faster than others.
Home Improvements Savings Guide
Homeowners have numerous opportunities for savings through the new law, but renters will find fewer benefits. Portable appliances, like window-unit heat pumps, are not currently eligible for savings, but this could change.
Tax Credits
- Get a home energy audit
- Make energy-saving renovations and buy efficient appliances
- Install a heat pump
- Install solar panels or other renewable energy options
Rebates (Not yet available)
- Get discounts for renovations that reduce energy use
- Get discounts for energy-efficient appliances for lower-income households
Electric Vehicle Savings Guide
Tax credits can lower the cost of new and used electric cars, pickup trucks and S.U.V.s for many buyers. However, only some models qualify. There are no savings for other types of vehicles, such as e-bikes or motorcycles.
Tax Credits (Some are instant)
- Buy a new electric car, pickup truck or S.U.V.
- Buy a used electric car, pickup truck or S.U.V.
- Install an electric vehicle charger at home if you live in a rural or low-income area
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