Inflation Reduction Act
$9 billion in home energy rebate programs to help people electrify their home appliances and for energy-efficient retrofits.
10 years of consumer tax credits to make heat pumps, rooftop solar, electric HVAC and water heaters more affordable, which make homes more energy efficient.
$4,000 in consumer tax credits for lower- and middle-income individuals who buy used electric vehicles, and up to $7,500 tax credits for new EVs
$1 billion grant program to make affordable housing more energy efficient
Companies to Benefit
Home owners who upgrade their insulation, air sealing and ventilation can get up to $1,600 in tax rebates. Insulation companies should create a strategy to educate home owners on the program and convert those interested into customers. Paid search is typically the first place we start when marketing insulation services.
- 30% federal tax break for rooftop solar installations for 10 years.
- Home battery systems will qualify for the 30% credit for the first time.
- Building a solar or wind farm. The investment tax credit for onshore wind and solar starts at 30%, but if certain criteria are met, it could be as high as 70% for projects under 5 MW and 50% for larger projects, according to the report.
- $250 for an exterior door ($500 total for all exterior doors)
- $600 for exterior windows and skylights
Home owners who upgrade their HVAC have several areas for rebates.
- $1,750 for a heat pump water heater
- $8,000 for a heat pump for space heating and cooling
- $600 for; central air conditioners; electric panels and certain related equipment; natural gas, propane, or oil water heaters; natural gas, propane, or oil furnaces or hot water boilers;
- $2,500 for electric wiring
HVAC companies should create a strategy to educate home owners on the program and convert those interested into customers. Paid search is typically the first place we start when marketing HVAC services.
- New electric vehicles up to $7,500 tax credit for 10 years—until December 2032
- Used EVs up to $4,000 or 30% of the price of the vehicle, whichever is less.
- Commercial EVs – Qualified Commercial Clean Vehicles provides a tax credit of up to 30% of the incremental cost between the EV and a comparable internal combustion vehicle. Hybrid vehicles that have an internal combustion engine and at least a 15-kWh battery would qualify for a 15% credit. The maximum credit amounts are based on the weight, with vehicles less than 14,000 lbs. capped at $7,500 and those over 14,000 lbs. capped at $40,000.
- First wave of EV and battery manufacturing onshoring.
- A business that installs an EV charger can get up to 30% of the total cost of equipment and installation. If you complete the installation project after 2022, the tax credit, per property item, is up to $100,000.
- Home EV charging station installations tax credit is 30% of the costs of hardware and installation for qualified property.
*In 2023 the tax credit for business and home installations, will apply to other EV charging equipment, like bidirectional (i.e., two-way) charging equipment.
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