Inflation Reduction Act: Your Money Breakdown
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The Inflation Reduction Act (IRA) provides various rebates and tax credits to promote the use of electric vehicles, solar power, and energy-efficient appliances. The act includes a 30% tax credit for solar, battery storage, and electrical panel upgrades, and a $7,500 tax credit for qualifying electric vehicles. Nonprofit organization Rewiring America has an online IRA savings calculator to help individual navigate these savings, which vary by state and individual circumstances.
Inflation Reduction Act: A Free Electric Bank Account
The Inflation Reduction Act (IRA) offers Americans rebates and tax credits for purchasing EVs, solar, and electrical appliances. Use the IRA savings calculator from Rewiring America to see what you can save.
Rewiring America, an electrification nonprofit, aims to simplify electrification. They offer a savings calculator that proved useful when I upgraded to a 200-amp service panel and had rooftop solar and Tesla Powerwalls installed.
The calculator confirmed that I could claim a 30% tax credit for solar, battery storage installation, and an electrical panel upgrade. It also verified that my 2023 Volkswagen ID.4 qualified for a full $7,500 tax credit.
Inflation Reduction Act rebates
On July 27, 2023, the US Department of Energy released application guidelines for $8.5 billion in electrification and energy efficiency rebates provided by the IRA. These rebates will significantly lower costs on home improvements and electricity bills for consumers.
Rebates cover home electrification, appliances, and reward energy savings of at least 15-20%. While not income-capped, at least half of the program’s funding will assist low-income households.
Make Use of the IRA Savings Calculator
The IRA savings calculator is a straightforward tool to understand personalized incentives regarding tax credits and upfront discounts. As an example, I created a case study for a family of five, homeowners with a household income of $120,000, living in Pennsylvania. The calculator confirmed they could claim $15,600 in available tax credits on their 2023 taxes if they purchased rooftop solar or an EV before year-end.
Rebates, or “upfront discounts,” depend on the area median income. When the rebates launch in Pennsylvania, the hypothetical family will qualify for substantial ones. For instance, they could cover half of their electric/induction stove costs up to $840.
Here is Rewiring America’s guide to the IRA, and here is how to qualify for the EV charger tax credit.
To boost your home’s resilience, consider going solar with a battery storage system. Use EnergySage, a free service that provides comparable online solar quotes, access to unbiased Energy Advisers, and hundreds of pre-vetted solar installers competing for your business.
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