White House Releases Tax Credit Information
Issue Date: January 04, 2023
The White House has released the first edition of a new resource titled Building a Clean Energy Economy: A Guidebook to the Inflation Reduction Act's Investments in Clean Energy and Climate Action, which provides clear descriptions of the law's tax incentives and funding programs to build a clean energy economy, lower energy costs, tackle climate change, and reduce harmful pollution.
The Inflation Reduction Act authorizes a combination of tax credits and tax deductions to homeowners who want to make upgrades to their property so they can save energy and reduce their energy costs. They can fix inefficiencies, like drafty windows and poor insulation, that lead to energy waste. New tax credits and deductions in the Inflation Reduction Act can reduce the cost of energy-efficient home upgrades, including heat pumps and other appliances, windows, doors, and more; offset the cost of adding residential clean energy sources, including solar panels and battery storage; and make constructing energy-efficient single and multi-family homes cheaper and easier. The law also includes nearly $9 billion for consumer home energy rebate programs to electrify home appliances and perform energy efficient retrofits, with a focus on low-income consumers.