Energy Incentives

The Fall 2024 Climate Change Symposium, “Clean Energy: Our Way Forward” presented by the Coalition for Adapting to Climate Change in Del Mar on October 9th, outlined an exciting array of incentives and strategies for individuals to benefit from in electrifying our homes and community.

When upgrading your home or vehicle, you may be eligible to save energy and money with the tax credits and rebates available as part of the Inflation Reduction Act (IRA). Passed by Congress in 2022, the IRA is the most ambitious climate law in U.S. history. It makes electrification accessible to millions of Americans by offering generous rebates and tax credits for home retrofits and electric vehicles. The purpose is to achieve US climate goals by accelerating electrification and decarbonization. Climate modeling shows that this can put the US on track to meet our emissions targets under the Paris agreement, when coupled with state, local and executive action.

The symposium speakers explained that the IRA essentially gives people an electric bank account that resets each year allowing you to electrify your home cheaper and faster. It can also be used to help offset expenses you already have for your house. To take full advantage of the benefits, you will want a multi-year plan considering your home’s expenses, replacement schedules and the tax credits available to you.

Residential Clean Energy Credit

You may be eligible for significant annual tax credits to lower the cost of clean energy improvements to your home. Expenses that may qualify include solar electric panels, solar water heaters, wind turbines, geothermal heat pumps, fuel cells and battery storage technology.

Energy Efficient Home Improvement Credit

If you make energy improvements to your home, tax credits are available for a portion of qualifying expenses. Expenses that may qualify include exterior windows (including skylights), exterior doors, insulation, heat pumps, heat pump water heaters, central air conditioners, water heaters, electric panels and home energy audits.

Electric Vehicle Credit

Never pay at the gas pump again by switching over to electric vehicles. Tax credits up to $7,500 are available for eligible new electric vehicles and up to $4,000 for eligible used electric vehicles.

From purchasing clean vehicles to making your home more energy efficient, the Inflation Reduction Act of 2022 may have a significant effect on your taxes. Making these opportunities known and accessible will help us transform the country’s energy landscape which will be critical to tackling climate change.

For more details on these rebates and tax credits, go to Energy.gov/save or irs.gov/credits-and-deductions and consult your tax advisor to help determine your eligibility and how to access the rebates and credits.

A professional or do-it-yourself home energy assessment can help you identify the areas in your home you should prioritize upgrading in order to save energy and lower your utility bill. See energy.gov/energysaver/home-energy-assessments for guidance.