Inflation Reduction Act - Clean Energy Tax Credits

The Inflation Reduction Act makes the largest climate investment in American history by investing in clean energy infrastructure, manufacturing, and efforts to strengthen our nation's energy sector. This law lowers energy costs by providing several tax credits to help American families save money and make improvements to their homes, and transportation methods. Check out the following tax credits available:

• Electric Vehicle (EV) Energy Tax Credit: You may qualify for a credit of up to $7,500 under Internal Revenue Code Section 30D if you buy a new, qualified plug-in EV or fuel cell electric vehicle (FCV). The Inflation Reduction Act of 2022 changed the rules for this credit for vehicles purchased from 2023 to 2032. To claim the credit and for more inflation, visit here.

• Installing Rooftop Solar panels: Households can receive a tax credit to cover 30% of the costs of installing rooftop solar.

• Lower Home Energy Costs: The Low-Income Home Energy Assistance Program (LIHEAP) provides federally funded assistance in managing costs associated with home energy bills, energy crises, weatherization, and energy-related minor home repairs. If you are a resident of Fresno County, apply here.

• Making Energy efficient improvements: You may be eligible for a tax credit to cover up to 30% of the costs for certain efficiency improvements. These efficiency improvements include upgraded windows, doors, insulation, and other home weatherization services, or highly efficient heating and cooling appliances like heat pumps, central air conditioners, and water heaters.

• Replacing heating or cooling systems: Households can claim a tax credit for 30% of the costs of buying and installing a heat pump, up to $2,000 including support for any electric system upgrades needed to make the home heat-pump-ready. 

Additional Resources:

• White House Clean Energy for All

• DOE's Home Energy Efficiency Tax Credits for Consumers Table

• DOE’s Guide to Investing in America for Homeowners, Renters, and Drivers

• IRS' Guide to Credits and Deductions Under the Inflation Reduction Act of 2022

• Energy Star Guide to Federal Income Tax Credits and Incentives for Energy Efficiency

• Taxpayer Advocate Resource on the Inflation Reduction Act