INFLATION REDUCTION ACT

At the core of the Inflation Reduction Act lies a suite of impactful tax credit provisions aimed at alleviating the financial strain caused by rising costs. The tax credits are designed to encourage the adoption of energy-efficient home upgrades like solar panels, insulation, and heat pumps. Furthermore, tax advantages are extended to those purchasing electric vehicles (EVs).

There are numerous rules and limitations for each credit, so it’s important to plan ahead to maximize your tax benefits.

Energy Efficient Home Improvement Credit

The Annual Credit Limit is $1,200.

Credit equals up to 30% of the sum of:

• Qualified energy efficient improvements

• Residential energy property expenditures

• Home energy audits

Residential Clean Energy Credit

Credit for Solar electric property and battery storage

• 30% credit for 2022 to 2032

• Only available for principal residence

• Unused credit carries forward indefinitely.

Clean Vehicle Credit

Individuals: Maximum credit of up to $7,500.

Businesses: Maximum Credit of up to $40,000

INFLATION REDUCTION ACT

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