This week, President Biden signed the Inflation Reduction Act. While the name suggests the focus of the legislation is on increasing inflation, it also tackles a variety of issues facing everyday Americans. One of those issues is climate change. Indeed, the bill offers $370 billion toward climate change and energy efforts. But how will this impact us? In a few ways:
Energy-Efficient Home Improvement Credit
Buildings contribute to roughly 12.5% of all US greenhouse gas emissions. In order to combat this, the bill offers an Energy-Efficient Home Improvement Credit. This credit allows households to claim a tax reduction up to 30% for upgrades they have made to their homes to improve energy efficiency. Such upgrades include adding insulation, installing energy-efficient windows, updating electrical panels, and installing heat pumps.
Residential Clean Energy Credit
In addition to the Energy-Efficient Home Improvement Credit, homeowners can also take advantage of the Residential Clean Energy Credit. What’s the difference? While the former focuses on home improvement projects, the latter focuses on green energy. Homeowners who install renewable energy systems like solar panels can receive incentives to help cut the cost of the installation. According to the New York Times, a typical $20,000 solar panel installation could be cut down to $6,000.
Subsidies for Electric Vehicles
To help make electric vehicles more affordable, the bill also offers subsidies aimed at lower- and middle-class Americans. If the car was assembled in North America, and if you make less than $150,000 per year, you could receive up to $7,500 in tax credits.
Rebates for High-Efficiency Appliances
In addition to the electric vehicle subsidies, lower- and middle-class Americans can also receive rebates for high-efficiency appliances. For example, a family could receive up to $840 for a more efficient stove or oven, and up to $8,000 for a heat pump.
With the Inflation Reduction Act, it is now easier for Americans to invest in green energy. If you’re in Suffolk County or the surrounding areas and looking to install solar panels, Empire Clean Energy Supply is here to help. Call us today at 631-589-4340 to get started!