H.R. 5376 - Inflation Reduction Act
What it means for YOU
10 ways the Inflation Reduction Act 2022 helps you save money and improve your home
President Biden signed the Inflation Reduction Act (IRA) into law on August 16, 2022. This historic bill covers several issues impacting American lives today but is anchored by clean energy and climate-related investments totaling nearly $370 billion.
The 730-page document has quite a bit to read through. Thankfully we’re here so you don’t have to.
The bill contains plenty of benefits, especially for Rhode Island homeowners who want to go green with solar!
We’ve summed up the bill into 10 benefits you as a homeowner can reap going green at home.
1. 30% Tax Credit On Solar Systems:
This is the benefit we’re most excited about! Thanks to the solar Investment Tax Credit, or ITC, homeowners can get back nearly a third of a solar system purchased between 2022 and 2032! This is going to help homeowners who want to convert to clean energy with solar dramatically.
2. 30% Tax Credit on Energy Storage:
This ITC involves batteries that run on solar-generated energy. Solar batteries are great for powering your home when your panels cannot produce energy, or during a power outage. There are many great brands in energy storage such as; Generac, and Enphase. At Rooftop Power, we offer Rhode Islanders many great solar battery options of different sizes to make sure we have the right fit for your home.
3. Tax Credits For Home Builders:
This tax credit is a significant increase to the section 179D tax deduction that was originally passed by congress as part of the Energy Policy Act of 2005. The 179D tax deduction will remain the same until the end of 2022, but as of January 1st, 2023 the new benefits will apply.
4. Up to $7,500 Tax Credit on EVs:
Qualified taxpayers who purchase an EV, or electric vehicle, that meets certain conditions are eligible for this ITC. It’s important to know which vehicle qualifies as many popular manufacturers such as Tesla have already met their manufacturer sales cap.
5. 30% Tax Credit On EV Charges:
This tax credit is great for folks who want to charge their EV at home! Did you know that 80% of EV owners charge at home? Check out our article where we go over how many solar panels are needed to power your electric vehicle with examples for Tesla, Hummer EV, and Rivian
6. $8,000 Rebate On Heat Pumps:
With the right income requirements, homeowners can receive a large rebate when installing a heat pump. This means it’s a perfect time to make your kitchen energy efficient!
7. $1,750 Rebate On Heat Pump Water Heaters:
One of the biggest expenses when switching from gas to electric heat and hot water is the water heater. This rebate for qualifying homeowners can help take a little pressure off when making the switch to an energy-efficient household.
8. $840 Rebate On Electric Stoves:
Cooktops, Ranges, And Ovens: When switching to solar power for your home, another great way to save is by converting appliances around your house to be more energy efficient. This may mean switching out traditional light bulbs for LED bulbs that require less power output, upgrading your home from gas to electric heat & hot water, or simply getting a better-performing stove! The rebates included in the Inflation Reduction Act can help you save on some much-needed upgrades.
9. Up to $4,000 Rebate On Breaker Box Upgrades and $2,500 Rebate On Electrical Wiring:
Want to switch to renewable energy but need repairs on the electrical system in your home? You may qualify to get these new rebates on upgrades and repairs that might be needed before making the switch to solar power.
10. Cleaner Air:
These incentives coming into place are expected to cut greenhouse gas emissions by 40% of 2005 levels by 2030! Not only will this benefit the world as a whole, but it will also make the air you breathe around your home cleaner for your whole family.
The new Inflation Reduction Act is going to be a very helpful tool for homeowners like you who may be interested in solar power for your home. When you combine the rebate on electric stoves, cooktops, and ovens with the 30% tax credit on solar systems, it’s a great time to do more research into solar near you.